BSR Engineering and Development Ltd. subsidiary BSR Projects Ltd. (TASE: BSRP) will transfer half of its rights to a lot in Phoenix, Arizona, Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY). The company plans to build a residential and commercial project for $300 million on the site.
Each companies will invest an initial $15 million to buy the six-acre downtown lot, and then will jointly build 1,000 housing units and 3,000 sq.m. of commercial space.
In a separate deal, Africa-Israel has paid BSR Europe Ltd. (TASE:BSR) for the first two properties in the Latvian capital of Riga, for $103 million. This was the first transaction under which BSR Europe will sell a large part of its properties to Africa-Israel. Negotiations are underway on the other properties.
BSR Europe’s original partner, Benny Steinmetz, has already sold his share in the Riga projects to Africa-Israel. Africa-Israel was to buy four properties in Romania from BSR Europe, but Steinmetz exercised first refusal rights.
BSR Europe expects to report a pretax capital gain of NIS 98 million on the sale of properties in Latvia and Romania. The company posted a net profit of NIS 32.4 million on NIS 198 million revenue in 2006. Net profit was 60% higher than in 2005.
Published by Globes [online], Israel business news - www.globes.co.il - on April 1, 2007
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