Africa-Israel sells Manhattan building for $222m

The company will report a pretax profit of $14 million on the sale of the residential and commercial building at 88 Leonard Street.

Africa-Israel Investments Ltd. (TASE:AFIL) subsidiary AFI USA Inc. has sold a residential and commercial building in Downtown Manhattan at a value of $222 million - the value recorded in the company's books. Africa-Israel will report a pretax profit of $14 million on the sale.

The building at 88 Leonard Street has 352 apartments and stores. The property has two outstanding loans: a $24 million mezzanine loan and a $132 million loan from the original financing to buy the property. Africa-Israel expects to report free cash flow of $47 million on the sale, after repaying the loans. The sale will reduce Africa-Israel's consolidated debt in its balance sheet by $156 million.

Africa-Israel, controlled by chairman Lev Leviev, originally bought the property through its joint venture with Boymelgreen Developers LLC, owned by Shaya Boymelgreen, Leviev Boymelgreen, which was liquidated.

Africa-Israel's share price rose 2.6% by mid-afternoon today to NIS 22.10, giving a market cap of NIS 2.6 billion.

Published by Globes [online], Israel business news - - on June 22, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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