Africa Israel Investments
Africa Israel Investments is an Israeli holding and investment group with historical interests in real estate, construction, infrastructure, energy, manufacturing, tourism, retail, media, and leisure.
Last updated August 31, 2026
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Overview
Africa Israel Investments, also known as AFI Group, is an Israeli investment holding company whose historical portfolio has extended across property development, construction, infrastructure concessions, energy, manufacturing, tourism, retail, fashion, communications, and media. It was established in 1934 during the British Mandate by Jewish investors from South Africa seeking to support economic development in the Yishuv. After the establishment of Israel, the company broadened its commercial and financial activity and became one of the early Israeli companies to have shares traded on the Tel Aviv Stock Exchange. The company’s ownership and strategic direction changed substantially over time. Bank Leumi acquired control in the early 1970s. Shlomo Grofman served as president and chief executive from 1978 until 1996. Control was acquired by diamond merchant and industrialist Lev Leviev in the mid-1990s, with the transaction completed around the end of 1996 and the beginning of 1997. Under Leviev, the group expanded its international reach and assembled a broad collection of operating companies and investments. Real estate became one of the group’s most visible activities. Through affiliates including AFI Development, AFI Europe, AFI USA, Africa Israel Residences, and AFI Properties, the group pursued residential, office, retail, hotel, and large-scale urban development projects in Israel, Russia, the United States, and Europe. Notable historical projects and assets included the AFI Palace Cotroceni shopping center in Bucharest, Palace Flora in Prague, The Apthorp in New York, and other major development sites. The group also held or developed residential communities in Israel under the Savionim name. Other operations included Danya Cebus, a construction and infrastructure company; interests in toll-road and public-private infrastructure projects; energy and convenience retail activities associated with the Alon Group and Dor Alon; industrial holdings such as steel and ceramics businesses; hotel operations and international hotel franchises; fashion brands including Gottex and Gideon Oberson; telecommunications through Tadiran Telecom; and Russian-language broadcasting through Channel 9 in Israel. The exact composition of the portfolio changed through acquisitions, disposals, restructuring, and changes in control. The group was heavily affected by the global financial crisis. Falling property values in the United States, Russia, and Eastern Europe weakened the value of its assets and contributed to defaults on a series of bonds. In 2010, the company completed a debt restructuring reported at approximately NIS 7.4 billion. A further debt settlement was sought in 2016. These events made the group an important Israeli example of the risks associated with highly leveraged international property expansion, although the available material does not establish a single definitive description of its current ownership, operating structure, or status. Africa Israel Investments and companies associated with Leviev also became the focus of criticism over alleged connections to the construction of Israeli settlements in the West Bank. The issue prompted divestment and exclusion decisions by several institutions and affected a planned British diplomatic tenancy in one of the group’s buildings. The company was also connected with controversy surrounding a privately built prison project that Israel’s Supreme Court ruled unconstitutional before occupation. Because the historical sources describe a complex group with changing subsidiaries and ownership arrangements, this entry treats Africa Israel Investments as a corporate holding-company subject rather than as a consumer-facing product brand.
History
Africa Israel Investments was founded in 1934 during the British Mandate by Jewish investors from South Africa who wanted to contribute to the development of the local Jewish economy. Following Israel’s establishment, the company expanded its commercial and financial activity and became one of the early Israeli enterprises whose shares traded on the Tel Aviv Stock Exchange. Bank Leumi acquired control in the early 1970s. Shlomo Grofman was president and chief executive from 1978 to 1996. In November 1996, diamond merchant Lev Leviev acquired control from Bank Leumi, with the transition taking effect around the end of 1996 and the beginning of 1997. Grofman subsequently left the company. Leviev transformed Africa Israel into a more internationally oriented investment group, expanding into property, energy, manufacturing, construction, and related sectors. The group’s real estate portfolio became particularly prominent. AFI Development operated in Russia, while AFI Europe coordinated projects in several European countries. AFI USA pursued residential, hotel, and income-producing property in American cities. In Israel, Africa Israel Residences developed complete neighborhoods incorporating homes, retail, schools, open space, and community facilities. AFI Properties held commercial real estate such as shopping centers and office buildings. The group also developed or owned major properties including the Apthorp in New York and the AFI Palace Cotroceni shopping center in Bucharest. Construction and infrastructure were represented by Danya Cebus and by investments in build-operate-transfer and private-finance initiatives. These activities included participation in Israel’s Cross-Israel Highway, Highway 431, student housing, and a privately developed prison project. The group also built a diversified operating portfolio outside property. Its historical interests included Dor Alon and Alon USA Energy, steel and ceramics manufacturing, hotels and leisure facilities, fashion companies such as Gottex, telecommunications through Tadiran Telecom, and Russian-language television through Channel 9. The company’s international expansion left it exposed to the global financial crisis. Falling property prices in the United States, Russia, and Eastern Europe reduced asset values and contributed to defaults on bonds. Africa Israel restructured approximately NIS 7.4 billion of debt in 2010 and sought another debt settlement in 2016. The group also sold or reduced selected holdings, including its interest in Gottex and properties in the Tel Aviv area. The available reference material does not fully establish the subsequent ownership, legal structure, management, or current operating status of the parent company. Africa Israel and businesses associated with Leviev faced sustained criticism over alleged links to Israeli settlement construction in the West Bank. This led to press coverage, institutional divestments, socially responsible investment exclusions, and the cancellation of a planned British Embassy tenancy in the Kirya Tower. The private-prison project connected with the group was separately invalidated by Israel’s High Court of Justice. These controversies, combined with debt restructuring and portfolio disposals, are central to the company’s modern public profile.
- 2014
Norwegian fund exclusion and Cyprus regulatory fine
[1]The Norwegian Government Pension Fund excluded Africa Israel, while Cyprus’s securities regulator fined AFI Development over reporting failures.
- 2010
Debt restructuring
[1]The company restructured a large volume of debt after defaults linked to the international property downturn.
- 2009
AFI Palace Cotroceni opens
[1]The Bucharest shopping-center project opened as AFI Palace Cotroceni.
- 2008
Settlement-construction controversy intensifies
[1]The group faced international criticism over alleged links to construction in Israeli settlements in the West Bank.
- 2001
AFI Development established
[1]AFI Development was established to pursue large-scale property development in Russia.
- 1996
Lev Leviev acquires control
[1]Lev Leviev acquired control from Bank Leumi and subsequently expanded the group internationally.
- 1978
Shlomo Grofman becomes president and CEO
[1]Shlomo Grofman began a tenure as president and chief executive that lasted until 1996.
- 1970
Bank Leumi gains control
[1]Bank Leumi acquired control of the company in the early 1970s.
- 1934
Company founded during the British Mandate
[1]Jewish investors from South Africa established Africa Israel Investments to support economic development in the Yishuv.
Products and positioning
Diversified investment holding company and international corporate group
Real estate development · 2001
AFI Development
AFI Development was the group’s Russian real estate arm, developing large residential, office, retail, hotel, and mixed-use projects in Moscow and other major cities. Historical projects included the Mall of Russia and the Tverskaya Zastava site. Its activities illustrate the group’s strategy of using separate operating companies to pursue large international property investments.
Real estate development · 1998
AFI Europe
AFI Europe coordinated the group’s European property activity from 1998. Its historical portfolio included residential, office, and shopping-center projects in the Czech Republic, Serbia, Bulgaria, Romania, Poland, Hungary, Germany, and Latvia. Palace Flora in Prague and AFI Palace Cotroceni in Bucharest were among the better-known assets associated with the platform.
Real estate investment and development · 2002
AFI USA
AFI USA was established to pursue high-end residential projects, income-producing properties, and hotels in the United States. Its historical activity included properties in New York, Miami, Los Angeles, and Phoenix, including the Apthorp residential building in New York. The unit was part of the international property expansion that later exposed the group to the American real estate downturn.
Residential development
Africa Israel Residences
Africa Israel Residences developed complete residential neighborhoods in Israel under the Savionim brand. Rather than focusing only on individual apartment buildings, its projects were described as integrated communities combining housing with shopping areas, schools, green spaces, cultural facilities, and sports amenities.
Construction and infrastructure
Danya Cebus
Danya Cebus served as the group’s construction and infrastructure arm. Its historical projects extended across Israel, Russia, Romania, and North America, and included work connected with major infrastructure and public-private initiatives. The company was separately listed on the Tel Aviv Stock Exchange according to the reference material.
Energy and convenience retail
Dor Alon and Alon USA Energy
The group’s historical energy interests included Dor Alon in Israel and Alon USA Energy in the United States. Activities described in the reference material included fuel stations, refining, terminals, pipelines, asphalt production, and convenience stores. These operations gave the otherwise property-centered group exposure to energy distribution and retail.
Industrial manufacturing
AFI Industries
AFI Industries represented the group’s industrial interests, including a major stake in the steel company formerly known as Packer Plada and Negev Ceramics. The businesses produced steel and building or interior-design ceramic products and were also described as having activities in Russia.
Hotels and leisure
Africa Israel Hotels
Africa Israel Hotels historically operated hotels in Israel and abroad, including Crowne Plaza and Holiday Inn franchise properties. Its portfolio also included hotels in Russia, Germany, and Romania, as well as an amusement park in Eilat. The group’s tourism activities complemented its commercial-property and leisure investments.
Fashion and swimwear · 1997
Gottex
Gottex was a prominent swimwear brand acquired by Lev Leviev and the Africa-Israel Group in 1997 from founder and designer Lea Gottlieb. The group also associated its fashion portfolio with Gideon Oberson, Christina in Canada, and Israeli franchises for Zara and Pull&Bear. Africa Israel later sold its 50 percent stake in Gottex in 2009.
Telecommunications
Tadiran Telecom
Tadiran Telecom was described as a controlled company developing telecommunications solutions. It formed part of Africa Israel’s effort to maintain interests in technology and communications alongside its larger property, infrastructure, and industrial holdings.
Broadcasting and media
Channel 9
Channel 9 was an Israeli television station serving Russian-speaking audiences and was included among the group’s historical communications and media interests.
Controversies
2014
AFI Development reporting violation
The Cyprus Securities and Exchange Commission fined AFI Development for failures involving the filing and delayed filing of financial-results information.
2009
Private prison declared unconstitutional
Israel’s High Court of Justice blocked operation of a privately built prison near Beersheba, ruling the private-prison model unconstitutional before the facility opened.
2008
West Bank settlement-construction controversy
Africa Israel and Lev Leviev faced international criticism over alleged involvement in construction connected with Israeli settlements in the West Bank. The issue led to press coverage, institutional divestment, and exclusion decisions.
Brand decisions
2016
Second debt settlement soughtStrategyBackground
The group continued to face obligations and financial pressure after the earlier restructuring.
Action taken
Africa Israel sought a second debt settlement.
2011
Sale of Metropolitan Life Insurance Company TowerM&ABackground
Africa Israel was seeking to strengthen liquidity after the property downturn and debt restructuring.
Action taken
The group sold the Metropolitan Life Insurance Company Tower in New York.
Aftermath
The sale was reported as improving cash flow and increasing available cash by approximately US$88 million.
Sale price. US$165 million (October 2011)
2010
Large-scale debt restructuringStrategyBackground
The global financial crisis reduced real estate values in the United States, Russia, and Eastern Europe and contributed to defaults on company bonds.
Action taken
Africa Israel restructured approximately NIS 7.4 billion of debt.
Aftermath
The restructuring became a defining part of the group’s corporate history, while additional debt-settlement needs were reported in 2016.
Debt restructured. NIS 7.4 billion restructured (2010)
2009
Sale of Gottex stakeM&ABackground
Africa Israel held a significant interest in the Gottex swimwear business as part of its fashion portfolio.
Action taken
The group sold its 50 percent stake in Gottex to its joint-venture partners.
Aftermath
The disposal reduced the group’s exposure to the fashion business and supported portfolio rationalization during a period of financial pressure.
2009
Sale of Tel Aviv-area shopping-center interestsM&ABackground
The group was reviewing assets while international property values and liquidity were under pressure.
Action taken
Africa Israel Properties sold its stakes in two shopping centers in the Tel Aviv area to Melisron.
Aftermath
The transaction formed part of a broader program of asset sales and portfolio adjustment.
1996
Lev Leviev acquires control from Bank LeumiM&ABackground
Bank Leumi had controlled Africa Israel since the early 1970s, while Lev Leviev was building a diversified international business platform.
Action taken
Lev Leviev acquired control of Africa Israel in November 1996 and expanded its international investment activities.
Aftermath
The company moved toward a broader multinational holding-company model spanning property, energy, manufacturing, construction, and related businesses.
Recent events
- 2011
Metropolitan Life Insurance Company Tower sold[1]
M&A · Other
Africa Israel sold the Metropolitan Life Insurance Company Tower in New York, a disposal described as improving the group’s cash position.
- 2010
First major debt restructuring completed[1]
Bankruptcy · Other
Following bond defaults and pressure from falling property values, Africa Israel completed a debt restructuring reported in reference material at approximately NIS 7.4 billion.
- 2009
Africa Israel affected by international property downturn[1]
Other · Bankruptcy
Sharp declines in real estate values in the United States, Russia, and Eastern Europe placed substantial pressure on the group and its leveraged expansion strategy.
Sources2 sources
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