Africa Israel to sell Tel Aviv property

TEL AVIV, April 22 (Reuters) - Africa Israel Properties (AFPR.TA), a subsidiary of real estate developer Africa Israel Investments (AFIL01.TA), said on Wednesday it has agreed to sell a Tel Aviv property for 166.5 million shekels ($39.5 million).

The company said it will sell 95 percent of the Africa Israel Tower in central Tel Aviv and 50 percent of the unused building rights in the property to an entity controlled by foreign investors.

Upon completion of the deal Africa Israel will record a pretax capital gain of 17 million shekels.

The buyer has two-year options to buy the remaining 5 percent in Africa Israel Tower for 7.7 million shekels and the remaining 50 percent of the unused building rights for 20 million shekels.

Africa Israel chief executive Izzy Cohen said the sale was part of the company's strategy to increase liquidity by selling off properties.

Earlier this month Africa Israel Properties agreed to sell its stakes in two shopping centres in the Tel Aviv area to Melisron Ltd (MLSR.TA).

Africa Israel Investments, controlled by billionaire Lev Leviev, has interests in real estate, energy, hotels and infrastructure.

Last month it reported a fourth-quarter loss of 2.69 billion shekels in the wake of a sharp drop in the values of its properties in the United States and Russia. ($1=4.21 shekels) (Reporting by Tova Cohen; Editing by Greg Mahlich)