Lev Leviev is selling properties in New York as he looks to pare down the debts of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY). Subsidiary Africa Israel Holdings USA Corporation has closed on the deal to sell the properties at 23 Wall Street and 15 Broad Street in New York City's financial district to a Far Eastern investment fund for $150 million. The company has also allocated 49.9% of the rights in The Clock Tower for $149.7 million. The sale of The Times Building for an undisclosed amount is contingent upon obtaining permission of the lender.
The three deals were first reported at the end of August.
Africa-Israel said that the property sales will reduce its debt by $118.5 million, not including a deal for The Times Building. The company will report a capital gain of $6.2 million on the sale of the properties at 23 Wall Street and 15 Broad Street, but will report no material gain on the rights allocation in The Clock Tower deal.
Africa-Israel did not disclose the name of the buyer. It noted that the parties will each have two directors on the steering committee for The Clock Tower so long as the ownership remains at 50.1/49.9%, and that Africa-Israel continues to manage it. Each party has first refusal rights in any sale of the property.
Africa-Israel still owns properties at 111 Fulton Street and 60 Ann Street in Lower Manhattan.
Africa-Israel's share rose 3% in early trading on the TASE today to NIS 27.38
Published by Globes [online], Israel business news - www.globes-online.com - on November 16, 2008
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