Africa Israel Investments


Africa Israel Investments Ltd. is an international holding and investment company based in Yehud, Israel. The group consists of several private and public companies active in areas such as real estate, construction, infrastructure, manufacturing, tourism and leisure. The company’s shares are traded on the Tel Aviv Stock Exchange and are a constitute of the TA-25 Index. The company became the subject of newspaper coverage in 2008, for its association with the construction of Israeli settlements on the West Bank.

History

Early years

Africa Israel Investments was founded in 1934, during the British Mandate, by Jewish investors from South Africa who wanted to support development in the local economy of the Yishuv. After the establishment of the state of Israel the company expanded its commercial and financial activities and was one of the first companies in the country whose shares were traded on the Tel Aviv Stock Exchange. In the early 1970s control of the company was acquired by Bank Leumi. From 1978 to 1996 Shlomo Grofman served as President and CEO of the company. In early 1997, Lev Leviev acquired control of the company and Grofman left.

Acquisition by Lev Leviev

In November 1996, the diamond cutter and diamond merchant Lev Leviev acquired control from Bank Leumi; he soon expanded the group’s activities into new markets and territories. Including: energy - Dor-Alon in Israel, US and Europe. Real Estate - AFI development, Russia, USA and Europe. Manufacturing - AFI Industries.

Debt restructuring

Following the Financial crisis of 2007–2008, the company was hurt by the drop of real estate values in the United States, Russia and eastern Europe. It defaulted on a series of bonds and in 2010 it restructured 7.4 billion shekels of debt.
In 2016, the company sought a second debt settlement. In a recorded conversation that was leaked to Israel Channel 10 News, Lev Leviev is heard saying: "I shit on every bank, but they haven't been able to make me move a centimeter because I don't owe any of them money, to no bank in the world. I piss on every bank from above, even Rakefet"

Controversy

The company became the subject of newspaper coverage in 2008, for Leviev's association with the construction of Israeli settlements on the West Bank. The British Embassy in Israel was planning to move into the Kirya Tower, one of its buildings, but cancelled when these ties were revealed in the British media.
In September 2009, Leviev's empire was on the verge of collapse. During the real estate bubble of the early 2000s, he had borrowed huge sums of money to acquire property around the world, including America. As American real estate prices plummeted and market values declined to less than half of what Leviev had paid for properties, so did the value of Africa Israel investments. Leviev said: "Our main mistake was the investments in the U.S."
In 2009, Africa Israel's recently constructed private prison near Beersheba was banned by Israel's High Court of Justice. The prison had not yet been occupied when it was declared unconstitutional.
In 2009, BlackRock divested from the company, allegedly "due to firm's involvement in West Bank settlement construction."
Following campaigning by the Boycott, Divestment and Sanctions movement, in January 2010 Danske Bank added Africa Israel to the list of companies that fail its Socially Responsible Investment policy; a bank spokesman noted that it was acting in the interests of its customers by not 'placing their money in companies that violate international standards'. In October 2011, Africa Israel sold the Metropolitan Life Insurance Company Tower for US$165 million, increasing its cash flow by $88 million. In the third quarter 2011, Africa Israel made a NIS 148 million profit. The company recorded net gains in real estate investment for the first nine months of 2011 in the amount of NIS 712 million, of which NIS 599 million were recorded in the third quarter.
On 30 January 2014, the Government Pension Fund of Norway excluded Africa Israel Investments from its portfolio, citing "Serious violations of individuals' rights in situations of war or conflict."
On 17 November 2014, the Cypriot AFI Development Plc, which did not file its 2012 financial results indicator report and delayed filing its 2013 financial results indicator until March 18, 2014, was fined by the Cyprus SEC for lack of transparency a violation of the section 13 Law.

Major holdings

Real estate

Danya Cebus is the construction and infrastructures arm of Africa Israel, listed on the Tel Aviv Stock Exchange. Danya Cebus is involved in major infrastructure projects in Israel, Russia, Romania and North America.
BOT & PFI Projects: Africa Israel owns 37.5% of the company operating the Cross-Israel Highway, Israel’s first toll road. Other BOT and PFI activities include Highway 431, Israel's first private penitentiary, student dormitories at the Hebrew University and the Tel Aviv Light Rail.

Energy and food retail

Alon Group: Consists of Dor Alon Oil, Israel's largest international energy group; Alon USA Energy, Inc. which operates the Big Spring refinery, 1,700 FINA gas stations in several states, terminals, more than 1,850 miles of oil pipelines, asphalt factories and more than 170 7-Eleven convenience stores.
Dor Energy: A national network of gas stations and Super Alonit convenience stores in Israel, controlling also Blue Square, Israel's second largest supermarket chain.

Industry

AFI Industries: Africa Israel holds a major interest in AFI Industries, Israel’s largest steel company and Negev Ceramics, the country’s leading company in design and manufacture of building and interior design ceramic products. AFI Industries is also active in Russia and intends to expand its activities to additional countries.

Tourism and leisure

Africa Israel Hotels holds the Crowne Plaza and Holiday Inn franchise in Israel, operates 10 hotels in Israel a Spa Hotel in Kislovodsk, Russia, a hotel in Germany, and 3 hotels in Bucharest, Romania, and is expanding its operations in Europe. It also holds and operates an amusement park in Eilat, Israel.

Fashion

The company's fashion Brands include Gottex, Gideon Oberson, Christina and other beachwear international brands, and the Zara and Pull & Bear franchises in Israel.
Lev Leviev and the Africa-Israel Group acquired Gottex in 1997, from its founder and chief designer Lea Gottlieb. After about a year heading the design team, Gottlieb left the company.

Communications and media

The company has a controlling stake in Tadiran Telecom which develops telecom solutions and in Channel 9, a TV station serving Russian speakers.

Recent disposals