They decided to continue the acquisition process only for the first three buildings. Thus, the transaction is now valued at 90 million Euros compared to 164 million Euros as the deal for the whole project.
According to the release published yesterday morning on the Tel Aviv stock exchange, the buyer, Dedeman, informed the seller that he did not want to continue negotiations to complete the transaction mentioned in the non-committed letter of intent for AFI Park 4 & 5 offices.
"On the other hand, during a telephone conversation between representatives of the two sides, it was discussed the possibility that the talks on this issue would continue", the release also shows. Therefore, the transaction could still take place if Dedeman and Africa Israel still reach an agreement.
The Israeli press believes that the halting of the transaction is a new blow to Africa Israel Investments, which is in the process of debt restructuring, and the sale in Bucharest would have generated a cash flow of nearly 70 million Euros and a post- tax capital gain of nearly4.6 million Euros.
The deal was announced in June. "We have come to the conclusion that this acquisition is the safest step we can make today in the commercial real estate sector, where we want to invest. In addition, we believe that this investment will strengthen our group and our core business of retail , along with the trust of our existing and future business partners", said Dragos Paval, CEO of Dedeman. (Source: zf.ro)
