Israeli Investment Firm to Buy New York Times Building for $525 Million

Israeli conglomerate Africa Israel Investmentssaid a wholly owned subsidiary would buy the Manhattan building which currently houses the New York Timesfor $525 million.

The subsidiary made an initial payment of about $50 million, and would pay the remainder upon completion of the deal, the company said in a statement to the Tel Aviv Stock Exchange.

The subsidiary intends to get other partners involved in the deal and plans to negotiate the project's financing with a foreign international bank. It is not certain the deal will go through, the company said.

The historic building, at the centre of Manhattan's Times Square area, includes 75,000 square meters of commercial and office space. The majority of the space is currently rented to the New York Times, which is relocating to its new building and will vacate the site by July.

Africa Israel intends to invest $170 million in the building's renovation, which it expects would take about two years.

In March, the subsidiary said it would acquire a 50% stake in the Apthorp building in the Upper West Side of Manhattan for $426 million.

Africa Israel's shares were up 4.5% in Tel Aviv, compared with a flat broader bourse.