Africa-Israel buys Moscow properties for $130m

The company plans to develop the sites for more than $200 million.

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) has bought properties in Moscow for a total of $130 million.

A Russian subsidiary, in which Africa-Israel owns an 88% stake, bought 74% of the leasing rights to a lot occupied by a 12,000-sq.m. building for $37 million. The lot has development and building rights for up to 70,000 sq.m.

Africa-Israel bought 100% of a second lot occupied by 96,000 sq.m. of buildings for $30 million. The company plans to renovate the properties for $205 million

In a third deal, Africa-Israel bought half of the rights to a lot near the Belorussky Train Station for $60 million. The company plans to demolish the existing buildings on the site and build 100,000 sq.m. of office and commercial space.

Africa-Israel is also negotiating to buy 76% of a lot on the Saint Petersburg ring road, next to an IKEA store, for $3.4 million. The company plans to build a 22,000-sq.m. mall together with the existing landowner.

Published by Globes [online], Israel business news - www.globes.co.il - on February 21, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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