Africa-Israel Drops to Lowest on Record on Unit: Tel Aviv Mover
Africa-Israel Investments Ltd. (AFIL) fell to the lowest on record after the holding company said a reduction in a unit’s property values will result in a second- quarter loss of as much as 800 million shekels ($197 million).
The shares plunged 18 percent to 8 shekels, the lowest since the stock was listed in January 1995, at the close in Tel Aviv. The second-quarter loss will be at least 720 million shekels, according to a statement filed with the Tel Aviv Bourse.
The company’s AFI Development Plc (AFRB) unit, a developer of real estate in Russia, said the value of its properties declined by about $400 million because of changes in Moscow planning policy and the ruble’s depreciation against the dollar.
The value of properties being built at Pochtovaya, Kossinskaya, Tverskaya Plaza and Tverskaya Plaza by AFI fell after changes to development policies forced the company to revise projects. AFI also reduced the value of the Botanic Garden housing project, a joint venture with a company owned by the City of Moscow, to zero after a creditor on Aug. 2 sought to have the city’s unit declared bankrupt, AFI said.
“The company will continue its efforts to recover its costs and/or receive the development rights to the project,” AFI, based in Limassol, Cyprus, said in the statement.
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