Israeli bondholders file class-action suit against Starwood

The struggles stem from a mall portfolio it refinanced on the Israeli bond market

April 30, 2019 05:50PM
Starwood Capital Group's Barry Sternlicht and Israeli Bond Market (Credit: iStock)

Starwood Capital Group’s Barry Sternlicht and Israeli Bond Market (Credit: iStock)

Starwood Capital Group is facing allegations that it misled investors about the risks of its Israeli bonds that backed struggling shopping centers in the U.S.

The lawsuit stems from the struggles facing Starwood’s mall portfolio, where vacancy rates have increased and net operating income dipped, according to Wall Street Journal. It also adds to the challenges facing investors who bought debt in the once booming Israeli-bond market as the market has now soured.

Two groups of bond investors, known as Oporto Securities Distribution, filed the class-action lawsuit on March 24, alleging Starwood failed to properly disclose risks involved in the debt, according to the Journal. The lawsuit claims the damages total 74 million shekels or $21 million.

The bonds, which are backed by seven malls and trade in Tel Aviv, have fallen almost 50 percent in price since they were first offered in March 2018.

The investors are also suing S&P Global Ratings’ Israeli subsidiary, where it alleges that a ratings report failed to state that Starwood might not be able to repay certain debtors, according to the Journal.

Miami Beach-based Starwood bought a portfolio of malls in California, Indiana, Ohio and Washington state from Westfield Group in 2013. It then refinanced the portfolio by raising 910 million shekels (about $250 million) on the Israeli bond market.

Starwood said in a statement that the allegations are without merit, according to the Journal.

A number of real estate firms such as Extell Development, Delshah Capital and GFI Real Estate Limited turned to the Israeli bond market, where financing was cheaper than in the U.S. In recent months, that market has taken a turn, and bonds issued by American companies in Israeli have seen values fall at unprecedented rates. [WSJ] — Keith Larsen

The We Company laid off as many as 300 employees this week

Bluegreen Vacations to go private – again

Brenda Nestor’s Islamorada property hits market in bankruptcy sale

Former Miami Beach commissioner faces ethics complaint tied to constru…

Ocean Drive & Nini Jewels Trunk Show, hosted by designer Nini Hale

Ocean Drive & Nini Jewels Trunk Show, hosted by designer Nini Hale

On Thursday, April 25th, Ocean Drive and Nini Jewels hosted a trunk show and cocktail party at Neiman Marcus Bal Harbour. Guests were able to shop stunning pieces and meet jewelry designer, Ni…

Régimen venezolano reacciona a pronunciamiento militar bloqueando redes

Régimen venezolano reacciona a pronunciamiento militar bloqueando redes

Los sucesos en Venezuela continuan en desarrollo y mientras militares respaldan el cese de la usurpación y Guaidó convoca al pueblo a la calle, el régimen bloquea las redes y convoca a las milicias a Miraflores.

Por Cecilia Pachano/MiamiDiario

El hombre fuerte del partido del régimen PSUV, Diosdado Cabello, en una llamada al canal del estado VTV, convocó a las milicias a que se dirijan a Miraflores a defenderla.

Cabello dijo queb la situación es de total tranquilidad, pero luego hace un llamado a defender la revolución y a evitar que quienes apoyan a Guaidó tomen el Palacio de Miraflores.

Lea también: Reportan movimiento militar en respaldo al presidente Juan Guaidó en Venezuela

Por su parte el Ministro de Información más temprano  había tuiteado que el pronunciamientocalificando como «reducido grupo» a los militares que respaldan el cese de la usurpación.

Informamos al pueblo de Venezuela que en estos momentos estamos enfrentando y desactivando a un reducido grupo de efectivos militares traidores que se posicionaron en el Distribuidor Altamira para promover un Golpe de Estado contra la Constitución y la paz de la República».

Hasta el momento, Nicolás Maduro, la cabeza del régimen, no ha emitido ninguna declaración. De acuerdo a un Twitt de Heber García Plaza , general chavista disidente, Maduro estaría atrincherado en su residencia en Fuerte Tiuna. Sólo se han pronunciado en su apoyo, además de Cabello, el Fiscal General, William Tarek Saab, y el Presidente del TSJ gubernamental, Maikel Moreno.

Se supo que Casa Militar cerró los accesos al Palacio de Miraflores. Por su parte el Alto Mando militar no ha emitido ningún comunicado solo un mensaje por la red social del Ministro de la defensa, Vladimir Padrino López.

Bloqueo de redes

Netblock y Venezuela sin filtro confirmaron el bloqueo por parte de la gubernamental Cantv de las redes sociales Twitter, Youtube, Instagram y Facebook, como parte de la férrea censura que ejerce el régimen.

 

El Metro de Caracas suspendió el servicio este miércoles.

También le puede interesar:

Régimen de Maduro le construye celda a Juan Guaidó en Fuerte Tiuna

Guaidó advirtió a militares que la espera para abandonar al «usurpador» se acaba

Juez venezolana: Carvajal tiene el listado de todos los militares chavistas narcotraficantes

La entrada Régimen venezolano reacciona a pronunciamiento militar bloqueando redes se publicó primero en Miami Diario.

Back again: Michael Shvo, partners to buy oceanfront Richmond Hotel in South Beach

Back again: Michael Shvo, partners to buy oceanfront Richmond Hotel in South Beach

Patricia McBride Herbert, Allan Herbert, and Michael Shvo with 1757 Collins Avenue

Patricia McBride Herbert, Allan Herbert, and Michael Shvo with 1757 Collins Avenue

Developer Michael Shvo and his partners are bulking up in South Beach. The partnership is under contract to buy the oceanfront Richmond Hotel, marking the group’s second purchase along Collins Avenue this year, sources told The Real Deal.

In February, Shvo’s New York-based SHVO, Bilgili Holdings and Deutsche Finance America paid Tommy Hilfiger and the Dogus Group $103 million for the 83-room Raleigh Hotel. The property is next door to the Richmond Hotel.

The Richmond, at 1757 Collins Avenue, has 92 rooms in a four-story, nearly 52,000-square-foot building. It was built in 1941 and sits on a 32,670-square-foot lot, records show.

The sellers are Patti and Allan Herbert, who represent the third generation of the family that has owned the hotel since its inception, according to the Richmond’s website. The Herberts are major benefactors to the Frost Science Museum and the University of Miami, where they donated $8 million to name the Patti and Allan Herbert Wellness Center.

No sale price for the Richmond has been disclosed. The Raleigh, which sits on a larger, 60,541-square-foot lot, sold at $1.24 million a key. It had been closed since Hurricane Irma hit South Florida in September 2017.

John Wijtenburg, director of Colliers International South Florida’s hotel group, estimates that the Richmond could sell for about $600,000 a key or $55 million. “It needs a good bit of work to come up to the standards of competitive properties in the area, but it’s a well known asset in that market,” he said.

The Raleigh acquisition marked the first in South Florida for Shvo, chairman and founder of SHVO, and his partner, Serdar Bilgili, the owner of the Istanbul-based real estate private equity firm BLG Capital.

In New York, Shvo’s projects include the Getty building in West Chelsea. The same partnership that acquired the Raleigh and is now acquiring the Richmond also paid $135 million for the office portion of 685 Fifth Avenue in 2018. The group recently won approval to convert that space to residential condos.

Other oceanfront hotels near the Raleigh and Richmond that have sold in recent years include the Sagamore Hotel, which Fort Lauderdale-based InSite Group and New York-based EL Group bought for $63 million in 2016; and the Shore Club Hotel, which New York-based HFZ Capital purchased for $175.3 million in 2014.

Back again: Michael Shvo, partners to buy oceanfront Richmond Hotel in South Beach

The same partnership paid $103M for the Raleigh in February

Patricia McBride Herbert, Allan Herbert, and Michael Shvo with 1757 Collins Avenue

Patricia McBride Herbert, Allan Herbert, and Michael Shvo with 1757 Collins Avenue

Developer Michael Shvo and his partners are bulking up in South Beach. The partnership is under contract to buy the oceanfront Richmond Hotel, marking the group’s second purchase along Collins Avenue this year, sources told The Real Deal.

In February, Shvo’s New York-based SHVO, Bilgili Holdings and Deutsche Finance America paid Tommy Hilfiger and the Dogus Group $103 million for the 83-room Raleigh Hotel. The property is next door to the Richmond Hotel.

The Richmond, at 1757 Collins Avenue, has 92 rooms in a four-story, nearly 52,000-square-foot building. It was built in 1941 and sits on a 32,670-square-foot lot, records show.

The sellers are Patti and Allan Herbert, who represent the third generation of the family that has owned the hotel since its inception, according to the Richmond’s website. The Herberts are major benefactors to the Frost Science Museum and the University of Miami, where they donated $8 million to name the Patti and Allan Herbert Wellness Center.

No sale price for the Richmond has been disclosed. The Raleigh, which sits on a larger, 60,541-square-foot lot, sold at $1.24 million a key. It had been closed since Hurricane Irma hit South Florida in September 2017.

John Wijtenburg, director of Colliers International South Florida’s hotel group, estimates that the Richmond could sell for about $600,000 a key or $55 million. “It needs a good bit of work to come up to the standards of competitive properties in the area, but it’s a well known asset in that market,” he said.

The Raleigh acquisition marked the first in South Florida for Shvo, chairman and founder of SHVO, and his partner, Serdar Bilgili, the owner of the Istanbul-based real estate private equity firm BLG Capital.

In New York, Shvo’s projects include the Getty building in West Chelsea. The same partnership that acquired the Raleigh and is now acquiring the Richmond also paid $135 million for the office portion of 685 Fifth Avenue in 2018. The group recently won approval to convert that space to residential condos.

Other oceanfront hotels near the Raleigh and Richmond that have sold in recent years include the Sagamore Hotel, which Fort Lauderdale-based InSite Group and New York-based EL Group bought for $63 million in 2016; and the Shore Club Hotel, which New York-based HFZ Capital purchased for $175.3 million in 2014.

Trump insurance broker subpoenaed following allegations of asset infla…

In the US’s most expensive housing market, Stanford says no to afforda…

Jeff Bezos could buy $60M apartment from Trump’s friend

Ex-president of Peru tied to corruption scandal dies from self-inflict…

Miami Beach's Famous Oceanfront Promenade Welcomes It's Most Ambitious Hotel Yet

Miami Beach's Famous Oceanfront Promenade Welcomes It's Most Ambitious Hotel Yet

As the iconic Park Central Hotel transforms into the gorgeous Celino South Beach this month, Ocean Drive will finally be adorned with its grandest resort ever. Composed of four immaculate buil…

Bombero resultó herido tras incendio de embarcación en Hallandale Beach

Bombero resultó herido tras incendio de embarcación en Hallandale Beach

Una embarcación se prendió en fuego en el Canal Intracostero en la playa de Hallandale y un bombero resultó herido en el hecho.

Por Redacción MiamiDiario

El barco estaba atracado detras de una residencia en Diplomat Parkway.

La Guardia Costera de los Estados Unidos y varias unidades de bomberos se acercaron al lugar para apagar con el incendio.

La víctima fue transportada al hospital con lesiones que no eran potencialmente mortales.

La causa del incendio sigue bajo investigación.

Fuente: WSVN

También puedes leer:

8va Feria Anual de Adopción de Animales se llevó a cabo en Fort Lauderdale

Meliá será demandada por familia cubana en Florida por operar terrenos expropiados

Delfín encontrado en playa de Fort Myers tenía una bolsa de basura en su estomago

La entrada Bombero resultó herido tras incendio de embarcación en Hallandale Beach se publicó primero en Miami Diario.

One partner in Midtown Delray Beach sues another over efforts to sell the development

One partner in Midtown Delray Beach sues another over efforts to sell the development

Midtown Delray Beach rendering

Litigation may delay construction of a $100 million mixed-use development in Delray Beach. One of the two partners in the Midtown Delray Beach development has sued the other, and a potential buyer of the project also has sued to complete the purchase.

The partners in the Delray project are Hudson Holdings, led by principal Steven Michael, and Marshall Florida Investments, led by Rick Marshall. They assembled the seven-acre development site along West Atlantic Avenue for $26 million.

In January, the partners negotiated a deal to sell Midtown Delray Beach to an affiliate of Boca Raton-based Pebb Enterprises for $40 million. But Pebb failed to close on a purchase of the project by the contractual deadline on February 28.

On March 21, two affiliates of Hudson Holdings filed a lawsuit in Palm Beach Circuit Court against Marshall Florida Investments and two entities linked to Pebb Enterprises.

Hudson’s lawsuit alleged that the defendants started working together to extend Pebb’s purchase deadline in “a conspiracy to enrich Marshall and Pebb” by cutting Hudson out of a $20 million interest in the Midtown Delray Beach development.

The lawsuit accuses Marshall of breach of contract, Pebb of tortuous interference with a contract, and both Marshall and Pebb of civil conspiracy.

On April 16, Pebb affiliate Delray Midtown Properties filed its own lawsuit, claiming it deserves to complete its planned purchase of Midtown Delray Beach.

Pebb’s lawsuit claims the company was unable to buy the project by the Feb. 28 deadline because the sellers undermined a due-diligence review of the deal by failing to provide certain documents.

The requested documents include a signed letter of intent by World of Beer and a proposal to relocate historic homes on the development site from Wolfe Movers.

Michael, the Hudson principal, told the Palm Beach Post he expects a quick resolution of the lawsuits but did not elaborate. [Palm Beach Post]Mike Seemuth

One partner in Midtown Delray Beach sues another over efforts to sell the development

Midtown Delray Beach rendering

Litigation may delay construction of a $100 million mixed-use development in Delray Beach. One of the two partners in the Midtown Delray Beach development has sued the other, and a potential buyer of the project also has sued to complete the purchase.

The partners in the Delray project are Hudson Holdings, led by principal Steven Michael, and Marshall Florida Investments, led by Rick Marshall. They assembled the seven-acre development site along West Atlantic Avenue for $26 million.

In January, the partners negotiated a deal to sell Midtown Delray Beach to an affiliate of Boca Raton-based Pebb Enterprises for $40 million. But Pebb failed to close on a purchase of the project by the contractual deadline on February 28.

On March 21, two affiliates of Hudson Holdings filed a lawsuit in Palm Beach Circuit Court against Marshall Florida Investments and two entities linked to Pebb Enterprises.

Hudson’s lawsuit alleged that the defendants started working together to extend Pebb’s purchase deadline in “a conspiracy to enrich Marshall and Pebb” by cutting Hudson out of a $20 million interest in the Midtown Delray Beach development.

The lawsuit accuses Marshall of breach of contract, Pebb of tortuous interference with a contract, and both Marshall and Pebb of civil conspiracy.

On April 16, Pebb affiliate Delray Midtown Properties filed its own lawsuit, claiming it deserves to complete its planned purchase of Midtown Delray Beach.

Pebb’s lawsuit claims the company was unable to buy the project by the Feb. 28 deadline because the sellers undermined a due-diligence review of the deal by failing to provide certain documents.

The requested documents include a signed letter of intent by World of Beer and a proposal to relocate historic homes on the development site from Wolfe Movers.

Michael, the Hudson principal, told the Palm Beach Post he expects a quick resolution of the lawsuits but did not elaborate. [Palm Beach Post]Mike Seemuth

Bankruptcy judge approves sale of Palm House Hotel for $40M

Homebuyers with heavy debt might find it tougher to get a mortgage

These are the busiest construction firms in Miami

Ex-president of Peru tied to corruption scandal dies from self-inflict…

Prestige Imports CEO Brett David on The Watch Every Miami Man Needs

Prestige Imports CEO Brett David on The Watch Every Miami Man Needs

Prestige Imports CEO Brett David brings Ocean Drive into his world of ultraluxe timepieces.
“The same guy who collects vehicles collects watches and vice versa,” says Prestige Impo…