Africa Israel Investments
Encyclopedia
Africa Israel Investments Ltd. - AFI GROUP - is an international holding
and investment company
based in Yehud
, Israel
.
AFI Group consists of several private and public companies active in areas such as real estate, construction, infrastructure, manufacturing, tourism and leisure.
The company’s share are traded on the Tel Aviv Stock Exchange
, and are a constitute of the TA-25 Index.
. 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 who's 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 Groopman left.
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 (by acquiring Packer Plada).
. The British Embassy in Israel was planning to move into the Kirya Tower
, one of its buildings, but cancelled out 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."
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 Manhattan's Clock Tower for $165million, increasing its cash flow by $88 million. In the third quarter 2011, Africa Israel made a NIS 148million profit. The company recorded net gains in real estate investment for the first nine months of 2011 in the amount of NIS 712 million ($188 million), of which NIS 599 million ($159 million) were recorded in the third quarter.
. 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
(Highway 6), 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.
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.
, Gideon Oberson, Christina (Canada) 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.
which develops telecom solutions and in Channel 9 (Israel), a TV station serving Russian speakers.
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
and investment company
Investment company
An investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses....
based in Yehud
Yehud
Yehud is a city in the Center District in Israel that is part of the joint municipality of Yehud-Monosson. In 2007, Yehud's population was approximately 25,600 .- History :...
, Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
.
AFI Group consists of several private and public companies active in areas such as real estate, construction, infrastructure, manufacturing, tourism and leisure.
The company’s share are traded on the Tel Aviv Stock Exchange
Tel Aviv Stock Exchange
The Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
, and are a constitute of the TA-25 Index.
Early years
Africa Israel Investments was founded in 1934, during the British Mandate, by Jewish investors from South Africa who wanted to support the development of the local economy of the YishuvYishuv
The Yishuv or Ha-Yishuv is the term referring to the body of Jewish residents in Palestine before the establishment of the State of Israel...
. After the establishment of the state of Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
the company expanded its commercial and financial activities and was one of the first companies in the country who's shares were traded on the Tel Aviv Stock Exchange
Tel Aviv Stock Exchange
The Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
. In the early 1970s control of the company was acquired by Bank Leumi
Bank Leumi
Bank Leumi is an Israeli bank. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist movement to promote the industry, construction, agriculture, and infrastructure of Palestine.-History:...
. From 1978 to 1996 Shlomo Grofman
Shlomo Grofman
Shlomo Grofman is a leading Israeli real estate developer businessperson.-Biography:Shlomo Grofman is a central figure in many sectors of the Israeli business community and is widely acknowledged as one of the most prominent and innovative real estate entrepreneurs.Shlomo Grofman is the Active...
served as President and CEO of the company. In early 1997, Lev Leviev
Lev Leviev
Lev Avnerovich Leviev is a Bukharian-Israeli billionaire businessman, with a net worth of roughly $1.5 billion following the 2008 global financial crisis. Leviev is one of the most prominent Mizrahi Jewish individuals in the world and has been a major philanthropist for Jewish causes in Eastern...
acquired control of the company and Groopman left.
Acquisition by Lev Leviev
In November 1996, the Diamond Cutter and diamond merchant Lev LevievLev Leviev
Lev Avnerovich Leviev is a Bukharian-Israeli billionaire businessman, with a net worth of roughly $1.5 billion following the 2008 global financial crisis. Leviev is one of the most prominent Mizrahi Jewish individuals in the world and has been a major philanthropist for Jewish causes in Eastern...
acquired control from Bank Leumi
Bank Leumi
Bank Leumi is an Israeli bank. It was founded in London as the Anglo Palestine Company on February 27, 1902, by members of the Zionist movement to promote the industry, construction, agriculture, and infrastructure of Palestine.-History:...
; 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 (by acquiring Packer Plada).
Recent developments
The company became the subject of newspaper coverage in 2008 for Leviev's association with the construction of Israeli settlements on the West BankWest Bank
The West Bank ) of the Jordan River is the landlocked geographical eastern part of the Palestinian territories located in Western Asia. To the west, north, and south, the West Bank shares borders with the state of Israel. To the east, across the Jordan River, lies the Hashemite Kingdom of Jordan...
. The British Embassy in Israel was planning to move into the Kirya Tower
Kirya Tower
The Kirya Tower is a skyscraper in Tel Aviv, Israel. At 158 m , it is the sixth tallest building in Israel. Construction was completed in 2005 on land previously belonging to the IDF HaKirya base. The tower is located opposite Tel Aviv's tallest buildings, the Azrieli Center complex, and is...
, one of its buildings, but cancelled out 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."
Following campaigning by the Boycott, Divestment and Sanctions
Boycott, Divestment and Sanctions
Boycott, Divestment and Sanctions refers to a campaign first initiated on 9 July 2005 by 171 Palestinian non-governmental organizations in support of the Palestinian cause ".....
movement, in January 2010 Danske Bank
Danske Bank
Danske Bank is a Danish bank. The name literally means "Danish Bank" It was founded 5 October 1871 as Den Danske Landmandsbank, Hypothek- og Vexelbank i Kjøbenhavn ....
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 Manhattan's Clock Tower for $165million, increasing its cash flow by $88 million. In the third quarter 2011, Africa Israel made a NIS 148million profit. The company recorded net gains in real estate investment for the first nine months of 2011 in the amount of NIS 712 million ($188 million), of which NIS 599 million ($159 million) were recorded in the third quarter.
Real estate
- AFI Development Plc – Russia: A public company traded in the London Stock ExchangeLondon Stock ExchangeThe London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
. Founded in 2001, this company is one of the largest real estate developments companies in Russia, focusing on large scale projects in MoscowMoscowMoscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
, St. Petersburg, Perm, Volgograd and other main cities in Russia in the residential, offices, shopping malls, hotels and infrastructure sectors, such as the Mall of Russia and the Tverskaya Zastava site.
- AFI USA: Established in 2002, the company focuses on exclusive residential projects, income producing properties and hotels. The company is active in New York where it owns the New York Times Building, the “Clock Tower” and the APTHORP exclusive residential building. It is moreover active in Miami, Los Angeles and Phoenix, and is a partner in the Hard Rock amusement park in Myrtle Beach South Carolina (under construction) and holds building rights for a mega project in Las Vegas.
- AFI Europe: The company has been coordinating the group’s activities in Europe since 1998. It owns residential, office and shopping mall projects in the Czech Republic, Serbia, Bulgaria, Romania, Poland, Hungary, Germany and Latvia. Among its outstanding assets is the “Palace Flora” mall in Prague and is building the “Cotroceni Park” in Bucharest, which upon its completion will become the largest mall in Romania. Cotroceni Park opened on 29 October 2009 as the "AFI Palace Cotroceni".
- Africa Israel Residences Ltd.: A public company traded on the Tel Aviv Stock ExchangeTel Aviv Stock ExchangeThe Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
operating in Israel under the “Savionim” brand name, Africa Israel develops entire neighborhoods including shopping centers, schools, green areas, cultural and sports facilities.
- Africa Israel Properties Ltd. A public company traded on the Tel Aviv Stock ExchangeTel Aviv Stock ExchangeThe Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
holding shopping centers and office buildings.
Construction and infrastructures
Danya Cebus: is the construction and infrastructures arm of Africa Israel, listed on the Tel Aviv Stock ExchangeTel Aviv Stock Exchange
The Tel Aviv Stock Exchange in Tel Aviv is Israel's only stock exchange.The TASE is the only public market for trading securities in Israel. It plays a major role in the Israeli economy....
. Danya Cebus is involved in major infrastructure projects in Israel, Russia, Romania and North America.
BOT
Build-Operate-Transfer
Build-own-operate-transfer or build-operate-transfer is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract...
& PFI
Private Finance Initiative
The private finance initiative is a way of creating "public–private partnerships" by funding public infrastructure projects with private capital...
Projects: Africa Israel owns 37.5% of the company operating the Cross-Israel Highway
Highway 6 (Israel)
Highway 6 , widely known as the Trans-Israel Highway or Cross-Israel Highway , is a major electronic toll highway in Israel. The highway was officially dedicated as the Yitzhak Rabin Highway , though this name is not commonly used. It started operating in the early 2000s and is being lengthened as...
(Highway 6), Israel’s first toll road. Other BOT and PFI activities include Highway 431
Route 431 (Israel)
Route 431 , is a suburban freeway in the south of the Tel Aviv Metropolitan Area in Israel. The freeway connects the Ayalon Highway in the west with Highway 1 in the east. It then continues east into Modi'in as a local road....
, 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.Alon USA
Alon USA Energy Inc. or Alon USA . Alon USA Energy, Inc. is headquartered in Dallas, Texas and engages in refining and marketing petroleum products primarily in the southwestern and south central regions of the United States. Alon USA was formed after Alon Israel Oil Company Ltd, the largest...
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 (formerly Packer Plada), 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 (2,250 rooms) a Spa Hotel in Kislovodsk, Russia (400 rooms), 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, IsraelFashion
The company’s fashion Brands include GottexGottex
Gottex is an Israeli swimwear manufacturer. It is America's top imported swimsuit label.-History:Gottex was founded in 1956 by Lea Gottlieb, a new immigrant from Hungary who adapted her expertise as a raincoat manufacturer to create a pioneering swimsuit company.She sold her wedding ring for...
, Gideon Oberson, Christina (Canada) and other beachwear international brands, and the Zara
Zara
-Places:*Zara, Turkey, district in the Turkish province of Sivas Province *Zara, Italian, Venetian, German and Hungarian name of the Adriatic port city of Zadar , former capital of Dalmatia, today in Croatia*Zara, Tibet, village in the Tibet Autonomous Region of China*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
Lea Gottlieb
Lea Gottlieb is an Israeli swimwear fashion designer. She emigrated to Israel from Hungary after World War II, and founded the Gottex company.-Early life:...
. After about a year heading the design team, Gottlieb left the company.
Communications and media
The company has a controlling stake in Tadiran TelecomTadiran Telecom
Tadiran Telecom Ltd is a telecommunications company which offers enterprises complete converged communications solutions that support voice, data, video and advanced applications. It is represented by a global network of more than 200 distributors and affiliates in 40 countries.The corporate...
which develops telecom solutions and in Channel 9 (Israel), a TV station serving Russian speakers.
Recent disposals
- In June 2009 Africa Israel Group sold its 50 percent stake in the Gottex swimwear firm to its joint venture partners for 44 million shekel ($11.3 million).
- In March 2009 Africa Israel Properties sold its stakes in two shopping centres in the Tel Aviv area to Melisron Ltd ,a company controlled by the Ofer Brothers GroupOfer Brothers GroupThe Ofer Group is an Israeli family shipping business owned by the Ofer family. The Ofer family owns one of the largest private shipping companies in the world....
.