Sources inform ''Globes'' that Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) has set, as a condition for the sale of its 73% holding in the Ramat Aviv Mall to Azrieli Group, for Azrieli to buy the rest of the company's malls as well. The properties in question are the Savion Mall in Yehud, the City Center in Haifa, the Savion Shopping Center, and Africa-Israel's 40% stake in the Lev Talpiot Mall in Jerusalem. Africa-Israel is asking NIS 400 million for the Savion Mall and Lev Talpiot Malls; the asking price for the other two properties in not known.
Last week, "Globes" cited sources as saying that the value for the Ramat Aviv Mall, located in north Tel Aviv, would be NIS 1.2-1.3 billion, assuming that Africa-Israel and Azrieli Group close a deal. A deal for all five malls could reach NIS 1.7 billion.
Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) owns the other 23% of the Ramat Aviv Mall. Migdal has first refusal rights on any sale by Africa-Israel of its stake in the property, a factor that may affect the negotiations with Azrieli Group.
In a separate development, UBS slashed its target price for Africa-Israel to NIS 343 from NIS 450, while reiterating its "Buy" recommendation. Although analyst Darren Shaw said, "We believe the group is well placed to weather the credit crunch and continue to add value in its real estate projects. The group is considering an equity issue to strengthen its ability to take advantage of opportunities, rather than need cash for current projects," he cut the target price because a fall in value of listed assets and the stronger shekel.
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2008
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