An wholly owned Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) subsidiary has bought 50% of the historic Apthorp building on Broadway on New York’s Upper West Side at a value of $426 million, plus $30 million in related costs.
The Apthorp building has 32,000 sq.m. in 163 apartments, of which 100 are rent-controlled, plus 2,600 sq.m. of fully leased commercial space, and 1,250 sq.m. of underground parking. The property has up to 6,000 sq.m. in unused building rights.
Rental revenue totals $11.7 million a year.
Africa-Israel intends to renovate the building, and then sell the luxury apartments. It also intends to obtain building permits to expand the building in line with its unused building rights. The company plans to invest $95 million in the renovations, which it expects will take five years, including the sale of the apartments.
Since the Apthorp is a historic building, Africa-Israel will probably obtain major tax breaks on its investment in the property.
Africa-Israel will finance the purchase and renovations with loans from foreign banks.
The deal is expected to be closed within days.
Published by Globes [online], Israel business news - www.globes.co.il - on March 8, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007