Amos Luzon in Advanced Talks to Acquire US Real Estate Firm Kohan Properties
Amos Luzon is negotiating a $6.4 million acquisition of Kohan Properties from Netanel Lorenzi, who recently seized the shares following a default by Michael Kohan. The deal echoes Luzon's past takeover of Dori Construction.
Amos Luzon is in advanced negotiations to acquire Kohan Properties from businessman Netanel Lorenzi in a deal valued at $6.4 million, less than a week after Lorenzi seized the company's shares. The acquisition is set to be executed through Luzon Investments and Energy, Luzon's holding company, which will purchase the shares from Lorenzi and his controlled entity, Dekma Finance.
Debt, Seizure, and Bondholder Stakes
Lorenzi, an Israeli businessman residing in the UK, granted a $4 million loan a little over a month ago, backed by a pledge of all shares in Kohan Properties held by Michael Kohan. After Kohan failed to repay the loan on time, Lorenzi executed the lien. Kohan had originally taken the loan after bondholders of the company—which is registered in the British Virgin Islands (BVI) and raised 412 million shekels on the Tel Aviv Stock Exchange—threatened to demand immediate debt repayment. This came to light after it was discovered that Kohan had withdrawn roughly $9 million from the company to settle private loans.
While Lorenzi committed to bondholders to meet all repayment obligations, he simultaneously pursued selling the shares to Luzon. Market estimates suggest Kohan is still attempting to repay his debt to Lorenzi, which currently stands at $4.6 million including interest. Kohan Properties owns 35 commercial properties across 19 US states, with a total value of approximately $710 million. Eight of these properties, valued at $213 million, are pledged to bondholders, while the company's bonds trade at a gross annual yield of 12.5%.
Echoes of Dori Construction
"The sale of the shares to Luzon could present Kohan with a fait accompli regarding the loss of control over the company and its assets," market sources noted.
In 2016, Luzon notably acquired Dori Construction from Gazit-Globe for just 10 million shekels, which included a 17% stake in the Dorad power plant—a company now boasting a market capitalization of 1.9 billion shekels. Industry insiders believe Kohan will struggle to legally challenge Luzon, who was not a party to the original loan, pledge, or foreclosure.
