Africa Israel Places Huge Q4 Loss on Russian Real Estate Woes

Israeli real estate developer Africa Israel Investments announced a decline in the value of its assets of 1.96 billion shekels in the quarter due to the weak Russian economy.

Africa Israel bondholders at a meeting in Tel Aviv to discuss their situation, December 2015.
Eyal Toueg

REUTERS - Israeli real estate developer Africa Israel Investments posted on Tuesday a wider loss in the fourth quarter due to a valuation loss on investment properties at its AFI Development unit.

Africa Israel had a net loss in the quarter of 1.58 billion shekels ($412.5 million) versus a loss of 836 million shekels a year earlier.

AFI, a Russia-focused real estate and investment firm that is 65 percent held by Africa Israel, posted a decline in the value of its assets of 1.96 billion shekels in the quarter due to the weak Russian economy and currency. It had a loss of $490 million in the quarter.

Africa Israel said it plans sell some assets in order to generate positive cash flow to help it pay off its debts. ($1 = 3.8300 shekels)