Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) has finally succeeded in selling the Ramat Aviv mall in northern Tel Aviv.
Melisron Ltd. (TASE: MLSR) reported today that it will buy the Ramat Aviv and Savionim malls for about NIS 393 million in cash.
NIS 200 million is for Africa-Israel's 73.4% stake in the Ramat Aviv mall, and NIS 193 million for the Savionim mall, which Africa-Israel owns in full.
The deal values the two malls at a combined NIS 1.7 billion, with the Ramat Aviv mall valued at about NIS 1.53 billion. However, net of the debt still owed on the mall, Africa-Israel will see about NIS 800 million in after-tax cash flow, which it said will not generate a significant capital gain or loss. Africa Israel assumed that there will be bank credit to repay of about NIS 955 million by the closing date in early July.
Sources inform "Globes" that most of the funding for the deal will be from Bank Leumi (TASE: LUMI).
Africa-Israel owns the malls through its Africa-Israel Properties Ltd. (TASE: AFPR) unit.
Africa Israel Investments CEO Izzy Cohen told "Globes," "I think completing a deal of this size in these difficult times with problems of credit and financial capability is an important step. I am happy that Africa Israel has brought the deal to fruition and signed the agreement with Ofer Assets and that proves that Africa Israel is doing the deal at very worthwhile prices. It was all possible because of the huge improvements that Africa Israel made to these assets in recent years and this is another example of the strategic plan and work of Africa Israel to increase liquidity and meet its commitments."
The deal is still subject to due diligence and certain conditions.
Lev Leviev is the controlling shareholder in Africa-Israel.
Melisron is controled by the Ofer family.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009