Africa-Israel sold two downtown properties and half of the Clock Tower and The Times building in midtown Manhattan.
Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev, has signed a term sheet for the sale of stakes in properties the company owns in New York held through AI Holdings (USA) Corporation, for a total of $350 million. Africa-Israel declined to name the buyer, and added that it would report only an immaterial financial gain on the sale.
Africa-Israel sold all its rights in two properties - 23 Wall Street and 15 Broad Street - for $150 million, 49.9% of the rights in the Clock Tower project in Midtown Manhattan for an investment of $150 million by the buyer, and 49% of the rights and liabilities in The Times Building for $49 million. The buyer will also participate proportionately in the $711 million development cost of the Times project.
The buyer has an option to increase its stake in the Clock Tower and The Time Building projects to 50%. Both options will be exercised at amounts proportional to the current deal.
Africa-Israel's share fell 0.9% by mid-morning.
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2008
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