#USA #Southlake #American Equity Partners #Giryes Capital Group #Bond Financing

Successful Placement of $157 Million Bond Financing for AEP

Giryes Capital Group has successfully facilitated the placement of a substantial $157 million bond for American Equity Partners (AEP). This bond was issued at a competitive 6.6% fixed interest rate within the Israeli capital market, offering a fascinating insight into the growing synergy between U.S. real estate sponsors and Israeli institutional investors.

The bond issuance is not just an impressive financial maneuver but also a reflection of the strong market confidence in AEP, supported by a diversified real estate portfolio consisting of three office buildings located in New Jersey, and an industrial asset in Florida. The quality and scale of these properties reinforce the bond's attractiveness to investors. The AEP real estate portfolio includes a total of 899,000 square feet which comprises:

• - 837,006 square feet of office space situated in Jersey City, East Brunswick, and Parsippany, New Jersey
• - 62,377 square feet of industrial space based in Pensacola, Florida

Use of Proceeds

The proceeds from this bond will strategically enhance AEP's portfolio through multiple avenues:
1. Refinancing Existing Debt: A substantial portion will go towards refinancing the existing debt secured by the aforementioned assets, strengthening overall financial stability.
2. Capital Improvements: An allocation of $25 million is dedicated to committed capital improvements, which include tenant improvements (TI) and leasing commissions (TILC). These efforts are essential for tenant retention and enhancing leasing capabilities within the properties.
3. Reinvestment Opportunities: Additionally, $12 million in cash-out proceeds will be earmarked for reinvestment across AEP's broader real estate portfolio. This initiative aims to support ongoing strategic growth and potential acquisition opportunities, ensuring AEP's position in the market remains robust.

Strong Market Response

Amir Giryes, President of Giryes Capital Group, highlighted the overwhelming investor interest in this bond issuance, stating that the demand surpassing the offered amount by more than double significantly reflects the market's confidence in AEP. He remarked on AEP’s continuous commitment to operational excellence and a focused investment strategy, which resonates well with institutional investors.

Giryes stated, “AEP continues to demonstrate outstanding leadership and operational excellence. We’re proud to support AEP and to enhance the connection between high-quality U.S. real estate and sophisticated Israeli capital.”

Building Bridges in Capital Markets

This transaction showcases a notable development in the ongoing relationship between U.S. real estate sponsors and Israeli debt capital markets. As institutional investors increasingly seek opportunities to invest in well-structured, income-generating assets in the U.S., this bond issuance marks a key milestone in Giryes Capital Group's mission to create efficient, cross-border capital solutions.

Developments like these illustrate the potential for a robust financial connection, ideally benefiting both asset sponsors like AEP and investors who are inclined towards stable returns backed by tangible real estate assets.

Conclusion

The successful bond issuance is a testament to the proactive measures taken by Giryes Capital Group and AEP amidst a dynamic economic environment, promising growth opportunities and long-term stability in a challenging real estate market. For investors, this serves as a significant indicator of the potential and confidence in the U.S. commercial real estate sector, reflecting a safe haven for their investments, especially amidst uncertainties in other markets.

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About Giryes Capital Group:
Giryes Capital Group is a boutique capital advisory firm located in the U.S. that specializes in sourcing both debt and equity solutions tailored for commercial real estate owners and developers. With access to extensive Israeli institutional capital, they have successfully orchestrated over $2 billion in cross-border real estate financing deals.