Bethel Finances: Leviev in talks to sell part of Times Square building

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Bethel Finance news:

Africa-Israel is negotiating to sell seven floors to a major hotel chain.

Africa-Israel Investments Ltd. , controlled by chairman Lev Leviev, is in talks with a major hotel chain to sell seven floors of the old New York Times building in Times Square for $250 million. Negotiations concern the fifth to 11th floors, which would be converted into a hotel.

Africa-Israel owns 50% of the old Times building, while the other 50% is held by the bank that financed the purchase in 2007. Africa-Israel relinquished the 50% balance to the bank as part of its debt settlement in 2009 and at the time declared its intention to sell part of the building.

Africa-Israel paid $525 million for the building at the height of the property boom in April 2007. Additional loans for renovations lifted its debt on the building to $715 million but then the value of the asset plummeted during the global financial crisis.

In the terms of its debt settlement in December 2009, Africa-Israel relinquished its rights to 50% of the building in exchange for reducing its debt by 60% from $652 million to $267 million.

Africa-Israel's share price rose by 0.14% to NIS 28.10 in afternoon trading on the TASE.