Lev Leviev's Africa Israel Investments, which recently relocated its headquarters to London, continues to provide work and revenues from its real estate projects in Russia for Israeli construction and infrastructure subsidiary Danya Cebus.
Danya has scheduled a special shareholders meeting for May 19th to approve a substantial shareholders deal with controlling shareholder, Africa Israel. The deal involves construction contracts between Danya Rus, Danya's Russian subsidiary, and Stroyinkom, another Africa Israel subsidiary. Under the agreement between the two Africa Israel group companies, Danya Rus will be the chief contractor for engineering and contract work on the superstructure of the Ozerkovskaya Street project in Moscow. There will be four separate office and commercial buildings of 6 to 11 stories and a total area of 55,000 square meters. Danya Rus will receive about $28.5 million of the estimated hundreds of millions that will be invested in this project. Danya Rus is expected to complete its work on the project within 60 weeks of the signing of the contract.
A few weeks ago Danya Cebus reported it would be recording $6.5 million in capital gains from the sale of its 20% share in a residential construction project in the Russian city of Perm to Africa Israel.
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Danya Cebus is currently trying to pull out of a tough period. In 2007 the company recorded net losses of NIS 149 million due to higher-than-estimated costs in the construction of Route 431. Those losses reduced the company's equity to just NIS 39.3 million as of December 31, 2007, down 83% compared to the end of 2006. Now Danya is expecting a cash infusion of up to NIS 200 million from Africa Israel.
Danya began operating in Russia in 2002, and had 64 employees there in 2007. Danya's activities in Russia included construction and the management and supervision of various projects for foreign companies in the Africa Israel group and other groups.
In addition to the Ozerkovskaya project, Africa Israel has contracts with Danya for the construction of a residential neighborhood in Otradnoye (Odinzovo) near Moscow, with about 6,200 housing units and a total area of 650,000 square meters.Danya is also involved in the planning of four office and commercial projects in the Moscow municipal area, in conjunction with RGI International, a real estate development company controlled by Israeli-Russian businessman Boris Kuzinez. That contract is valued at about $11 million.
Last year MirLand Development, which coordinates the Russian real estate activities of Eliezer Fishman's group chose Danya as the chief contractor for engineering and contract work on a commercial center being built in Saratov, at an estimated investment of $51 million.
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