TEL AVIV, April 7 Africa Israel Properties
(AFPR.TA) said on Tuesday it agreed to sell its stakes in two
shopping centres in the Tel Aviv area to Melisron Ltd (MLSR.TA).
Africa Israel Properties, a subsidiary of Israel-based real
estate developer Africa Israel Investments (AFIL01.TA), said it
will sell its 73.4 percent stake in a company that owns the
Ramat Aviv mall and its 100 percent stake in the Savyonim mall.
Africa Israel said the sale values the two properties were
1.74 billion shekels ($417 million) and it will receive 800
million shekels after tax for the sale of its stakes. It will
not post a capital gain or loss on the sale.
The deal is subject to regulatory approval.
Izzy Cohen, chief executive of Africa Israel, said the sale
was part of its strategy to increae liquidity in light of the
global financial crisis.
The company has said it planned to generate cash to meet its
financial obligations by selling off assets and refinancing bank
Last month Africa Israel reported a fourth quarter loss of
2.69 billion shekels in the wake of a sharp drop in the values
of its properties in the United States and Russia.
Africa Israel Investments, controlled by billionaire Lev
Leviev, has interests in real estate, energy, hotels, fashion
It is the parent company of AFI Development (AFIDLq.L), a
Russia-focused real estate firm.
Melisron is controlled by the Ofer brothers.
($1 = 4.17 shekels)
(Reporting by Tova Cohen; Editing by Hans Peters)