Aura Investments is in talks to buy a building in Midtown and convert it to apartments for short-term leases for $25 million.
Aura Investments Ltd. (TASE:AURA) has signed a term sheet with Livorno Properties to set up a joint venture that will buy Midtown Manhattan properties. Aura and Livorno are in talks to buy and convert a building in Midtown for $25 million.
The building currently has 80 apartments, which will be converted into 140 apartments for short-term leases. The building will cost $18.5 million, and an additional $6 million will be invested in the conversion. The Aura believes that it will be able to obtain financing for half of the price of the deal.
Aura's share rose 3.6% by early afternoon to NIS 3.14, giving a market cap of NIS 179 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2009
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