In the next two years, Africa Israel will purchase $95 million worth of income producing properties in East Europe, company general manager Pinhas Cohen announced today. The company will purchase hotels, commercial centres and office buildings.
These investments will be in addition to the company's plan for investing NIS 700 million or $165 million over the next two years in acquiring income producing properties in Israel.
As part of the plan, Africa Israel has started building a shopping mall in Prague.
The company is also undertaking residential construction in East Europe, with projects totalling 100,000 sq.m. in the capital of the Czech Republic. Meir Stembler, son of Africa Israel deputy general manager Zalman Stembler, is permanently resident in Prague, where he directs activity.
Africa Israel also intends to invest in the purchase of real estate in Budapest. Controlling shareholder Lev Levayev, may also resume the acquisition of properties in Russia this month, having suspended such activity when that country ran into difficulties. The company will also explore the possible purchase of properties in Romania.
Africa Israel owns 155,000 sq.m. of income-producing property in Israel, mainly the Ramat Aviv and Yahud shopping malls, Bank Leumi's computer complex in Lod, an industrial park in Ness Ziona, and an office and high-tech project in Rehovot.
Property-leasing income in January-June amounted to NIS 73.6 million, a 9% increase compared to 1998. The company is currently building (together with Yitzhak Tshuva), an office tower on Herzl Street corner of Ahad Ha'am Street in Tel-Aviv, an office and commercial building in Bnei Barak (together with the Avraham Shapiro family), and an office and commercial building in Haifa (together with Gad Zeevi).
Published by Israel's Business Arena September 5, 1999