29 August 12 10:46–Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev, posted a net loss attributable to majority shareholders of NIS 725.4 million (NIS 5.36 per share) for the second quarter of 2012, compared with a net profit of NIS 32.4 million for the corresponding quarter of 2011. The loss was in line with the company’s profit warning of a loss of NIS 720-800 million, due to downward valuations of properties held by its Russian development arm AFI Development plc (LSE:AFID). Africa-Israel’s net loss was NIS 1.09 billion for the second quarter, compared with a net profit of NIS 74.1 million for the corresponding quarter.

In second quarter of 2012, Africa-Israel made a net write-down of NIS 892 million, due to a fair value reduction on investment properties of NIS 873 million, most of which was for four projects of AFI Development as a result of planning policy changes by the Moscow Municipality. AFI Development also made a write-down of NIS 254 million for the drop in value on its inventory of buildings and land in its Botanic Garden project, after a petition for liquidation was filed against the project’s main investor.

In the first half, Africa-Israel made a net write-down of NIS 860 million, due to a fair value reduction on investment properties of NIS 771 million.

Africa-Israel’s loss from real estate operations was NIS 959 million for the second quarter, compared with a profit of NIS 104 million for the corresponding quarter…Read More>>

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