Africa-Israel owns seven projects in Prague, the capital of the Czech Republic, with a total value of $250 million, including the construction finishing, CEO Pinchas Cohen said today. The cornerstone for the largest project, the 85,000 sq.m., $65 million Flora Plaza, was laid on Thursday. The project includes a 21,000 sq.m. shopping mall, offices, warehouses, and stores.
The mall will be in the style of the Africa-Israel mall in Ramat Aviv, but will be designed by Czech architects. Volksbank of Austria will provide 80% financial coverage. Africa Israel has already leased 15% of the mall at $15 per sq.m. per month.
Three of the other projects in Prague are already operating with Volksbank’s investment company as a 36% partner:
- Broadway – a 9,500 sq.m. project on Prague St. in central Prague. Africa-Israel bought run-down buildings and invested $10 million in renovating them. Three office towers were leased to a newspaper for $17 per sq.m. per month. The commercial floor was leased for 20 stores at $32-42 per sq.m. per month. The 2,000 sq.m. basement was leased in shell condition to a local entrepreneur under a 10-year lease at $8 per sq.m. per month. The entrepreneur will invest $1 million in finishing and be exempt from paying rent for the first two years.
- Evropska – two office buildings with a total area of 4,800 sq.m. between the airport and the city. Africa-Israel bought run-down buildings and renovated them at a $10 million investment. The Czech national insurance institute rented 2,000 sq.m. and the rest was leased to 15 companies.
- Maiselova – a $2 million, 1,270 sq.m., three-storey building in the heart of the Jewish quarter. The building was leased to the Prague 2000 diamond company, owned by Africa-Israel chairman Lev Leviev.
Three other projects are in the advanced planning stages. There are still no figures for the investments involved.
Lev Leviev told “Globes” that Africa-Israel is currently considering purchasing income-yielding properties in London, in addition to the income-yielding properties it already owns in the US and Britain. He added that the main difference is that the company bought income-yielding properties in Western countries in primarily financial deals, while in Eastern Europe it operates as a developer.
Published by Israel's Business Arena on September 16, 2001