Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) reported today that a deal to sell an undeveloped property in Miami, Florida fell through.
The 24,427 square meter lot, known as "Block 42", was going to be sold to a US company for $88.7 million.
According to Africa-Israel, the buyer claimed "force majeure", a claim which grants the company the option to back out of the deal.
It appears that the occurrence that the buyer claimed was "force majeure" was a local municipality refusal to allow a tunnel to be built under the property, which made the deal not worthwhile for the buyer.
Africa-Israel, headed by Lev Leviev, said today that based on legal consultations, it does not intend to return the $18 million deposit it received.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2009
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