Tycoon Yitzhak Tshuva is in talks to raise $200 million for his Canadian real estate properties, apparently through a bond offering. But he is reportedly displeased with the valuations he's receiving on his Canadian properties so far.

Tshuva's properties in Canada are held through private companies, not his Tel Aviv-listed Delek group of energy companies.

He has several financing alternatives for his Canadian activities. Until a few weeks ago he was looking at holding offerings, worth a few tens of millions of dollars each, to Israeli institutional investors. He even asked the Israeli rating company Maalot to grant a rating to potential bonds. But, perhaps disappointed at Maalot's assessment, Tshuva has abandoned this avenue.

Another possibility would be to float the assets on a Canadian bourse, or in the United States, through Reit a company that holds real estate assets and issues securities that yield buyers annual returns, plus capital gains when appropriate.

To that aim, Tshuva is in talks with the Canadian branch of HSBC, which has offered to float the assets through Reit according to a value of $400 million. Tshuva reportedly thinks this valuation is also too low, and is trying to get better offers from Israeli and American investment banks, while continuing to negotiate the assessment with HSBC.

Tshuva has been dealing with North American real estate for over ten years. He has faith in the Canadian real estate market, and reportedly believes that prices will keep rising in Canada's cities for years to come.