Africa Israel, controled by Lev Leviev, is in talks to sell 50 percent of the Palac Flora shopping mall, situated above the Flora metro station in Prague, according to a company value of 115 million euro. If such a deal goes through, it will reflect a profit for Africa Israel of some 40 million euros on the mall that opened only 15 months ago. The company would register gains of 20 million euro on the transaction.
The mall, in which Africa Israel has invested some 74 million euros, is fully occupied, and the office spaces above rate 85 percent occupancy. The mall has notched up visitor rates of 6 million a year.
Since Africa Israel has put half the mall up for sale, some 20 central European investor groups have made offers. In the current second stage, five parties are in the running. The management company that operates the Palac Flora mall will continue in its current capacity after the sale.
The mall is held through subsidiary Africa Israel Properties, which is planning a share issue on the Tel Aviv Stock Exchange next month. According to estimates, the issue will be made at a company value of NIS 1.2 billion.
The major properties of the subsidiary are the Ramat Aviv mall (constituting some 37 percent of company revenues), the Science Park in Nes Tziona (23 percent of revenues) and the Government Complex in Tel Aviv (12 percent).
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