Sources inform ''Globes'' that Lev Leviev-conrolled Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) subsidiary Africa-Israel Properties Ltd. (TASE: AFPR) is in advanced negotiations to sell the Kiryat Weizmann Science Park in Ness Ziona to a private equity fund at a value of NIS 400 million. The value reflects a return on investment of 8%.
This is the same fund that bought 51% of the Kirya Tower and 95% of the Africa-Israel Tower in Tel Aviv.
The representatives of Africa-Israel bondholders yesterday submitted a debt rescheduling proposal, under which the company's NIS 7.5 billion debt to them will be repaid in full.
The sources added that in addition to the negotiations with the private equity fund, Africa-Israel Properties had been in talks with an Israeli investor. Those talks have been suspended.
Africa-Israel built and manages the Kiryat Weizmann Science Park. The buildings are leased to scores of high-tech and biotechnology companies. The Science Park currently has 100,000 square meters of built-up space, and the company also owns adjacent land reserves. The Science Park was established in 1971 at the initiative of then-Weizmann Institute of Science vice president Shalhevet Freier. The park's objective is to create ties between academe and industry.
Africa-Israel currently owns 45,580 square meters in the Kiryat Weizmann Science Park through Africa-Israel Properties and 31,454 square meters through AfSar Ltd. High-tech enterprises own some of the buildings. The science park had an occupancy rate of 98% at the end of 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2009
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