Cohan Properties Founder Fights Luzon Group for Control After Ownership Transfer

A high-stakes corporate battle is unfolding over the public commercial real estate firm Cohan Properties. Less than a week after ownership of the US-focused company was transferred to the Luzon Group, the firm's founder, Mike Cohan, is moving to reclaim control. This follows a turbulent period earlier this month when Cohan lost his grip on the company after siphoning funds from its treasury to repay private loans.

In a letter sent to the Luzon Group by Cohan's legal counsel, representatives stated that he intends to initiate legal proceedings to challenge the transactions that transferred ownership of the company. At this stage, Cohan is demanding that no further structural or financial moves be made within the firm. Conversely, the Luzon Group maintains that it possesses a rigorous legal opinion from British Virgin Islands attorneys—where Cohan Properties was incorporated for its Tel Aviv bond issuance—firmly validating its rights to the enterprise.

The Takeover Chain and Financial Entanglements

Earlier this month, businessman Netanel Lorenzi seized control of Cohan Properties after granting Mike Cohan a loan of approximately $4.6 million, backed by a pledge of all the public company's shares. Just a week later, Lorenzi flipped the shares to the Luzon Group and Alpha Hedging, a firm controlled by capital market activist Oren Halfon, for $6.3 million (19.5 million shekels).

Prior to these developments, roughly two months ago, Cohan unlawfully withdrew millions of dollars from the public company's coffers to settle debts tied to his private business ventures. This misstep forced him to turn to Lorenzi in August for emergency financing. The loan was ostensibly used to restore funds to the Cohan Properties treasury, but it ultimately proved devastating when Lorenzi chose to execute the collateral pledges and seize the enterprise.

Portfolio Scale and Luzon Executive Compensation

Earlier this year, Cohan raised 420 million shekels from local investors via a bond issuance on the Tel Aviv Stock Exchange. Today, the company owns approximately 35 commercial centers spread across 19 US states, with a combined valuation of roughly $710 million. Of these assets, eight properties valued at around $213 million (approximately 650 million shekels) are pledged as collateral to bondholders.

Meanwhile, the shareholders' meeting of the Luzon Group, which operates in real estate and infrastructure, approved the annual compensation package for controlling shareholder and CEO Amos Luzon, which could reach up to 6.1 million shekels, compared to 3.1 million shekels last year. The hike comes as Luzon has taken on additional leadership roles, including serving as chairman of the board of subsidiary Luzon Ronson and the Dorad power plant.