Leviev Sells Assets to Pay Off Debts

Israeli diamond magnet Lev Leviev is selling key assets owned by Africa-Israel Investments Ltd., the public real estate company he controls, to ensure that it has the cash to pay-off debts.

Africa-Israel concluded on Wednesday the sale of the Africa Tower office building for 166.5 million shekels ($39.4 million). This joins the recent sale of the prestigious Ramat Aviv mall in Tel Aviv.

The firm has bond obligations totaling 1.2 billion shekels maturing in 2009, and has raised that much with these sales as well as other assets such as its share in New York’s Clock Tower.

After Africa-Israel’s shares crashed last year, concerns were raised that it may be forced to default.

Leviev’s success in selling the assts in a tough real estate market and raise the necessary funds was rewarded with renewed confidence by the market, sending the company’s share price up 12 percent.