UPDATE 1-Africa Israel in early talks to sell properties

(Adds stock price, Globes report)

TEL AVIV, June 18 (Reuters) - Africa Israel Properties (AFPR.TA), a subsidiary of conglomerate Africa Israel Investments (AFIL01.TA), said on Wednesday it was in preliminary talks to sell various properties in Israel.

"There are initial talks taking place in recent weeks with several parties concerning the possible sale of various income-yielding properties of the company in Israel, which have not yet led to negotiations," the company said in a statement to the Tel Aviv Stock Exchange.

Shares in Africa Israel Investments were down 2.6 percent at 1256 GMT, compared with a decline of 0.6 percent in the broader market. Shares in Africa Israel Properties were up 0.2 percent.

The Globes financial newspaper had reported that Africa Israel was in talks to sell all of its shopping malls in Israel to the Azrieli Group for 1.7 billion shekels ($506 million).

The Azrieli Group, controlled by Canadian businessman and real estate developer David Azrieli, owns several shopping centres in Israel.

TheMarker financial news website reported that Africa Israel was in talks to sell properties in Israel worth between 7 billion and 12 billion shekels.

Africa Israel Investments, controlled by billionaire Lev Leviev, has interests in real estate, energy, hotels, fashion and infrastructure. It is the parent company of AFI Development (AFIDLq.L), a Russia-focused real estate firm. ($1 = 3.36 shekels) (Reporting by Tova Cohen; Editing by David Holmes)