mileageman
February 24th, 2005, 03:53 AM
http://www.globes.co.il/serveen/globes/docview.asp?did=887503&fid=942
Africa-Israel enters $500m Miami property partnership
Together with partners, Africa-Israel Investments purchased a 4.3 acre property with 90,000 sq.m. in building rights.
Golan Fridenfeld 23 Feb 05 18:24
Africa-Israel Investments (TASE:AFIL), controlled by businessman Lev Leviev, is expanding its reach in the US property market. Africa-Israel and partner Shaya Boymelgreen, together with US investors, have signed an agreement in principle to purchase a downtown Miami property owned by the Venezuelan government, for $74 million.
The beachfront property measures 4.3 acres. There are two office buildings situated on the property, covering 30,000 sq.m., but they are not the reason for the purchase. Additionally, the property has 90,000 sq.m. in building rights, intended mainly for residential construction. 90% of construction will be financed through bank loans, and the remaining 10% will be injected by shareholders in a company held jointly by Leviev, Boymelgreen, and their North American partners.
The neighborhood is considered an exclusive one, and it can be assumed that apartments will be priced accordingly. "I believe this project will yield half a billion dollars in revenue in the future," Africa-Israel Investments CEO Pinchas (Pini) Cohen said today.
"Miami is the third US market we're focused on, after New York and Las Vegas. We already have about 30 lots in Miami, (most of which were purchased from Union Bank of Switzerland), and we estimate the future value of the properties we intend to build on them at over $2 billion. Investing in Miami, New York, and Las Vegas spreads Africa-Israel's risk in the US market."
Africa-Israel enters $500m Miami property partnership
Together with partners, Africa-Israel Investments purchased a 4.3 acre property with 90,000 sq.m. in building rights.
Golan Fridenfeld 23 Feb 05 18:24
Africa-Israel Investments (TASE:AFIL), controlled by businessman Lev Leviev, is expanding its reach in the US property market. Africa-Israel and partner Shaya Boymelgreen, together with US investors, have signed an agreement in principle to purchase a downtown Miami property owned by the Venezuelan government, for $74 million.
The beachfront property measures 4.3 acres. There are two office buildings situated on the property, covering 30,000 sq.m., but they are not the reason for the purchase. Additionally, the property has 90,000 sq.m. in building rights, intended mainly for residential construction. 90% of construction will be financed through bank loans, and the remaining 10% will be injected by shareholders in a company held jointly by Leviev, Boymelgreen, and their North American partners.
The neighborhood is considered an exclusive one, and it can be assumed that apartments will be priced accordingly. "I believe this project will yield half a billion dollars in revenue in the future," Africa-Israel Investments CEO Pinchas (Pini) Cohen said today.
"Miami is the third US market we're focused on, after New York and Las Vegas. We already have about 30 lots in Miami, (most of which were purchased from Union Bank of Switzerland), and we estimate the future value of the properties we intend to build on them at over $2 billion. Investing in Miami, New York, and Las Vegas spreads Africa-Israel's risk in the US market."