Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) has bought an 11.5-acre site in Zaporizhya, Ukraine for $22 million on which it plans to build a 150,000-sq.m. office, commercial and luxury residential complex. Market sources estimate investment in the project at $500 million. The deal was made through the company’s Russian subsidiary, in which it owns an 88% stake.
The mall will cover 100,000 sq.m. and serve the city’s one million residents.
Last month, Africa-Israel filed a draft prospectus for floating its Russian subsidiary on the London Stock Exchange. The company did not set a price range for the offering, but on the basis of the company’s current and pending projects, the company will probably be floated at value of $3 billion.
A few days before filing the prospectus, Africa-Israel announced that its Russian subsidiary had bought land rights in Moscow for $302 million, and that it would make a $200 million joint investment in Perm, Russia, with another Africa-Israel subsidiary, Danya Cebus Ltd. (TASE: DNYA).
Published by Globes [online], Israel business news - www.globes.co.il - on March 21, 2007
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