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NEW YORK CITY-Furthering its platform of investing in underserved property sectors, Pembrook Capital Management has made an investment of $15 million in Seneca Nation of Indians special obligation bonds. The bonds will be used to fund infrastructure projects in the Seneca Nation's development and expansion in the western part of New York State.
The six-year, special obligation bonds due in 2013, carry an interest rate of 6 ¾% and are a private placement under SEC Rule 144A. According to a Pembrook release, "bond proceeds will help fund upgrades, overdue maintenance and expansion of a key natural gas well that services many of the nation's constituents and government entities." In addition, some of the proceeds will be used for a wastewater treatment facility that serves a health clinic, Early Childhood Learning Center, administrative complex and other facilities, along with the purchase of lands adjacent or near the Seneca Nation's territory, the release adds.
The deal is the first step in Pembrook's Native American Indian Investment Program, known as WELO. The locally based company, led by CEO Stuart Boesky, formed in October in part to provide capital to underserved property sectors. Boesky is the former CEO of CharterMac, now Centerline Capital Group.
"Native American real estate-related investments fit perfectly into the firm's mission to make socially responsible investments that are economically astute," a Pembrook spokeswoman tells GlobeSt.com. "Pembrook's first test on investments is an economic one, but the firm spends the vast majority of its time underwriting investments with a social component. She adds the company will consider deals across the country and is currently eyeing one in the Southeast.
"Pembrook Capital continues to explore new ways of fulfilling our socially responsible investment goals, and Native [American] Indian investments represent an especially worthwhile path," Boesky says in a statement. "The bonds in which we are investing will help fund projects critical to the Seneca National while also providing a very adequate return."
"The Seneca Nation entities supporting the bond issue in which Pembrook Capital is investing have excellent claims paying ability," adds Neil Bo, managing director at Pembrook. "We plan to make annual commitments to similarly related tribal investments on an ongoing basis under our WELO Program." Hecheto welo is an expression meaning "it is good" from a tribe of the Great Sioux Nation.
Pembrook has also committed to investing in real estate in the Gulf Opportunity Zone (GOZone) in the Southern US designated for special economic incentives as a result of hurricanes. Pembrook Capital is a strategic partnership with Mariner Investment Group Inc.
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