Africa-Israel Properties sold the holdings at a loss.
Real estate developer Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) subsidiary Africa-Israel Properties Ltd. (TASE: AFPR) has signed a contract to sell half of its holdings in a Tel Aviv tower to a British fund for NIS 400-500 million.
The company will sell 51% of its holdings in the Kirya Tower by selling an identical share of its stake its wholly-owned Machatzit Hayovel Ltd., through which its owns the building. Machatzit Hayovel was jointly owned by Lev Leviev-controlled Africa-Israel and Minrav Holdings Ltd. (TASE: MNRV), and in May, 2007, Africa-Israel Properties bought 50% of the shares in Machatzit Hayovel from Minrav for NIS 517.5 million. As such, the current sale represents a loss for Africa-Israel Properties.
Machatzit Hayovel Ltd owns the Kirya Tower, as well as student residences being built at the Hebrew University in Jerusalem.
Shares in Africa-Israel are down 0.58% today in Tel Aviv Stock Exchange (TASE) trading. Its shares are up 15% for the year to date.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2009
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