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Tycoons lining up to buy Africa Israel properties By Michael Rochvarger Tags: lev leviev, africa israel  Lev Leviev wants to sell Africa Israel's yielding properties in Israel, or at least to bring in new partners, and it seems there's no shortage of business barons slavering to help him improve his business empire's liquidity. Group company Africa Israel Properties yesterday confirmed the report in TheMarker that for weeks it has been in quiet talks to sell yield-generating properties in Israel. However, the company qualified, it hasn't entered into any official negotiations yet. Duly noted. But one way to view events is that Leviev has placed choice properties on the block and will sell each to the highest bidder. And the bidders are some of the biggest businessmen in Israel, who have been meeting with Zvia Leviev, daughter of and manager of the Africa Israel Assets Division, and other top Africa Israel people. The list is growing by the day, and so far includes representatives of David Azrieli's group, Yitzhak Tshuva's Delek Group, Chaim Katzman and Dori Segal's Gazit group, Amot Investments of Nathan Hetz's Alony Hetz group, and Amir Biram's British Israel. Advertisement By the way, Africa Israel Properties issued a clarification yesterday at the behest of the Israel Securities Authority, confirming that it really is selling its Israeli portfolio, while the Tel Aviv Stock Exchange suspended trading in its stock to give investors a chance to digest the developments. Africa Israel Properties owns about NIS 12.7 billion worth of yielding properties in Israel, including the Ramat Aviv mall, the Savyonim Mall in Yehud, the City Center Mall in Haifa, the Lev Talpiot Mall in Jerusalem, Panorama Center in Haifa, Africa Israel Tower in Tel Aviv, the Government Complex tower in Tel Aviv, the office building above the Ramat Aviv Mall, Concord Towers in Bnei Brak, office buildings in Savyonim and Yehud, the science park Kiryat Weizmann in Rehovot, another science park - Kiryat Mada - in Migdal Haemek, Global Park in Lod and the Rehovot Park. In its financial statement for 2007, Africa Israel Properties wrote that the government tower in Tel Aviv alone is worth more than NIS 840 million. Africa Israel is demanding premium prices for these prime properties, and given the intensity of the interest, one might think it could get them. Or, one might think that the sorry condition of the global real estate market may force it to lower its sights somewhat. One of the personalities with whom preliminary talks are taking place commented that the asking prices are "quite excessive" and "unrealistic." One of the main attractions for the hoarding business barons is the Ramat Aviv mall, which is believed to be worth about NIS 1.3 billion. Why actually is Africa Israel selling? Absent an explanation from the horse's mouth, one can only surmise. In essence, Leviev is a developer and the business's income comes from building and selling assets, and offerings. It isn't a company to become enamored of its assets and keep them come what may. Possibly the Africa Israel chiefs decided that the company's yielding properties in Israel weren't likely to appreciate in value any more. Therefore, by that theory, the company should sell them off and invest the money in new development ventures. Not entirely different is the theory that Africa Israel is seeking to shore up its liquidity in order to take advantage of opportunities arising in the reeling world property markets. The crisis that began last summer with the subprime mortgage mess in the United States wound up lowering property prices in prime locations around the world, because of the credit crunch. Not a few companies in trouble have property portfolios to sell on the cheap, and presumably, Africa Israel would like to be there with cash in hand. Some of the money could be used to roll over the company's NIS 1.5 billion in debt. And there is always the possibility that Africa Israel's shareholders want to withdraw dividends. Whatever the case, capital market sources feel that Africa Israel wants to meet some cash urgently. Otherwise it wouldn't willingly part with a prime asset like the Ramat Aviv mall. Bookmark to del.icio.us   Fragile cease-fire Olmert: Gaza cease-fire is fragile, may be short lived. Unbalanced stance Italy FM: EU stance on Israel in past swayed by intolerance.

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