AFI Europe NV has a commercial portfolio of more than one million square meters of gross leaseable area and 28,980 apartments under construction across Germany and Eastern Europe, according to a presentation by its parent company, Africa-Israel Properties Ltd. (TASE: AFPR), a subsidiary of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev.
Altogether, AFI Europe has completed or is building 32 projects in eight countries. Flagship projects include the Cotraceni Park in Bucharest, Palace Padubice in the Czech Republic, the Osiedle Europeski in Poland, and Airport City in Belgrade. The company is building more than 9,650 apartments in Romania, 4,400 in Poland, 3,300 in the Czech Republic, and 2,900 in Latvia, as well as in other countries. During the year, the company expanded activity to four more countries: Germany, Poland, Latvia, and Hungary, in part through the purchase of five projects in Bulgaria, Latvia, and Poland from BSR Europe Ltd. (TASE:BSR).
In 2007, AFI Europe initiated projects with an aggregate space of 2.7 million square meters, and investment in projects under development has climbed from NIS 4.3 billion to NIS 15.2 million.
In addition to Africa-Israel Properties' activities in Europe through AFI Europe and in Russia through AFI Development plc (LSE:AFID), the company operates in Israel, the US, and the Philippines. During 2007, the company bought out its partner in Half Jubilee Ltd., Minrav Holdings Ltd. (TASE: MNRV). Half Jubilee owns the 38-storey, 70,000-sq.m Government Complex (the Kirya) building in Tel Aviv and Hebrew University of Jerusalem dormitories. The acquisition was reportedly made at a value of NIS 1.4 billion. Africa-Israel Properties predicts a 37% increase in its operating profit from NIS 213 million in 2006 to NIS 316 million in 2007, and a 27% increase in revenue from NIS 269 million to NIS 340 million. The company invested NIS 2.9 billion in projects in January-September 2007.
Africa-Israel floated AFI Europe's sister company, AFI Development, which operates in Russia, in May 2007, at a company value of over $7 billion - the largest IPO by an Israeli company to date. AFI Europe has been slated for an IPO on the London Stock Exchange, but the offering has been postponed, apparently because of the market climate.
Published by Globes [online], Israel business news - www.globes-online.com - on December 10, 2007
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