TEL AVIV, March 30 Israeli real estate developer
Africa Israel Investments moved to a net profit in
the fourth quarter due to improved results at its Russian
subsidiary and as business grew in Israel and Europe.
Africa Israel said on Sunday it earned 3 million shekels
($861,000) in the quarter, compared with a loss of 106
million a year earlier.
Its income from rent and operations of assets increased by
31 percent in the quarter to 162 million shekels. This was
mainly due to improved results at Russian unit AFI Development's
shopping mall in Moscow as well as consolidated
income from rent in Germany and a rise in income in Romania and
"We continue to move forward in developing select projects
in Russia, Eastern Europe and Israel, which are expected to
contribute significantly to our results upon completion while
increasing the group's cash flow in coming years," Chief
Executive Avraham Novogrocki said in a statement.
The company, controlled by billionaire diamond dealer Lev
Leviev, was hit hard by the real estate meltdown in the United
States, Russia and eastern Europe. It defaulted on a series of
bonds and in 2010 restructured some $2 billion of its debt.
($1 = 3.4844 Israeli Shekels)
(Reporting by Tova Cohen)