"The New York Post" reports that Africa Israel USA Inc. has leased the ground floor, lower level and basement of the old New York Times Building to TSX Operating for its Running Subway division, an entertainment group.
The paper adds that the space could become a new theater or simply an exhibition space, though permits filed at the Buildings Department do not specify its future use.
On Monday, Africa-Israel announced that it expected to report a loss of NIS 2.7 billion for the fourth quarter of 2008. Part of the loss is due to the $380 million write-down on the old New York Times Building.
"Africa-Israel USA is lucking out big time," the paper stated. Sources added that other retailers are negotiating for the remaining 121,000 feet. This was the first lease for the building, "and it's a whopper."
Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY), controlled by chairman Lev Leviev bought the building in 2007 for $525 million. Last year, it sold a 49% interest to Hong Kong-based investment fund China Sonangol. Africa-Israel is investing $170 million in renovations.
Based on the asking price, the rental amount is around $4 million per year. The rent on basement was "negotiable."
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2009
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