Dekama Acquires Kohan Properties Amid Shareholder Misconduct

In a significant shift within the commercial real estate sector, Dekama, led by businessman Natanel Lorenzi, has completed a takeover of Kohan Properties. This move follows a period of considerable turmoil for the U.S.-based firm, which had previously raised approximately $100 million USD (412 million ILS) from Tel Aviv investors earlier this year through a bond issuance. The acquisition stems from Dekama's position as a creditor, exercising its rights over pledged shares to assume full ownership.

The acquisition marks a new chapter for both entities, particularly for Kohan Properties, which has been under scrutiny due to its former controlling shareholder, Mike Kohan. Allegations surfaced earlier this year that Kohan had improperly diverted company funds for personal debts, a situation that led to a downgrade in the company's bond rating by Midroog from A2 to A3. Despite initial apologies and assurances from Kohan, further withdrawals totaling approximately $1.1 million USD were reported in August, exacerbating the company's financial instability.

This development is particularly noteworthy given Natanel Lorenzi's prior entanglement with the Israeli capital markets. His former company, Dekama, faced regulatory action from the Israel Securities Authority (ISA), resulting in a fine of 525,000 ILS. This penalty was imposed due to speculative short-selling strategies executed by Lorenzi, which incurred millions in losses for Dekama's investors. These high-risk bets, including short positions on exchange-traded funds tracking major indices and specific stocks like Tesla and ARK Invest's funds, backfired significantly as the underlying assets appreciated in value.

Kohan Properties, which owns a portfolio of 17 income-generating assets across 13 U.S. states valued at approximately $100 million USD (420 million ILS), entered the Tel Aviv market as part of a broader trend of British Virgin Islands (BVI)-incorporated companies seeking debt financing. These BVI entities, often established by American Jewish business figures, transfer real estate assets to facilitate bond offerings in Israel. The recent events at Kohan Properties highlight the inherent risks associated with such cross-border financing structures and the importance of robust corporate governance.

The takeover by Dekama is expected to trigger an acceleration clause for Kohan Properties' outstanding bonds, potentially requiring immediate repayment. This situation underscores the volatile nature of the BVI real estate investment space and the critical role of creditor rights in safeguarding investor interests. The market will be closely watching how Lorenzi navigates the integration of Kohan Properties' assets and addresses the outstanding financial obligations following this aggressive acquisition.