The transaction is currently valued at EUR90 million, compared with EUR164 million, the value of the deal for the purchase of the five buildings.
According to a statement published on the Tel Aviv Stock Exchange, Dedeman, the buyer, informed the seller that it does not want to continue negotiations to conclude the transaction mentioned in the non-binding letter of intent for office buildings AFI Park 4&5. The statement also says talks between the two parties are likely to continue, thus, the deal could continue if Dedeman and Africa Israel reach an agreement.
The Israeli media think halving the deal is a new blow for Africa Israel Investments which is in full process of debt restructuring and the sale in Bucharest would have generated a cash flow of nearly EUR70 million and post-tax capital gains of nearly EUR4.6 million.
The five AFI Park office buildings are located near the AFI Cotroceni shopping mall in capital Bucharest. The occupancy rate of the AFI Park 1-5 buildings, whose gross lettable area reaches 70,000 square meters, is almost 100%. AFI 2 and 3 are 100% rented, AFI 1 is 97% and AFI 4 and 5 are 95% rented.