Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev, recently obtained an extension for the Apthorp building on Manhattan's Upper West Side. The company notified the TASE that subsidiary Africa-Israel Investments USA Inc. has signed a financial restructuring agreement for the project, subject to milestones.
Repayment of the $335 million principal on the Apthorp project loan has been pushed back three years. The interest rate on the loan will be LIBOR + 5%. In addition, the Apthorp project company will have the right to use proceeds from sales of condominiums, up to a total of $130 million, to repay the senior loan first.
$85 million of the $122.75 million mezzanine loan, which is secured by liens, will be exchanged for a new $15 million mezzanine loan, reducing the total loan to $52.75 million. $6.35 million in interest payments on the loan were also written off. Surplus cash after the full repayment of the senior and mezzanine loans will be shared with the lender, who will be eligible for an estimated $12.2 million.
In May, Africa-Israel received a go ahead from New York State Attorney General Andrew Cuomo to convert the 100-year old Apthorp apartment building into condominiums. The building has 163 apartments. The highest price paid to date for a condo in the building is $21 million for a four-room apartment.
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2010
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