Slowdown in New York's high-end market worries Israeli bondholders
Some investors are growing sceptical of financing faraway real estate in locales where they have no local knowledge
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New York
GARY Barnett, the developer who touched off a luxury-condo boom in Manhattan, will play host next month to a group of Israeli bond investors who are worried about dimming global interest in New York City's costliest homes. Mr Barnett's Extell Development Co, which sold debt in Tel Aviv tied to the performance of some of its priciest condo developments in New York, saw his company's bonds sink as low as 86 agorot on the shekel last week, with yields surging as high as 9.9 per cent. It was the first sign of alarm by Israeli investors who since 2008 have financed a US$2.4 billion borrowing spree by US property builders.
"It was not at our invitation, but we're happy to host them," Mr Barnett said by phone on March 17. "We're happy to have them here, and to take them through our properties and to show them the quality and the strength of the assets."
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