Africa Israel Investments Ltd. announced on Wednesday that it incurred a loss of around NIS 1 billion ($248 million) in the second financial quarter of 2012, of which NIS 725 million ($180 milion) is attributed to shareholders. The loss was partly expected after a warning was issued by the company several weeks ago, and was the result of a forced devaluation mainly of real estate the company owns in Russia worth some NIS 892 million ($221 million). The international holding and investment company, which is based in Yehud and was acquired from Bank Leumi by businessman Lev Leviev in 1996, reported some optimistic news as well. According to the company's second-quarter report, revenues based on the rental and usage of properties under its ownership rose in the second quarter by 11 percent to NIS 128 million ($31.8 million), an increase from the NIS 115 million ($28.6 million) from the same quarter in 2011. Company CEO Avraham Novogrocki said on Wednesday, "Despite the devaluation we executed, we continue to have faith in the great potential of this country." Meanwhile, Africa Israel Industries Ltd., a member of the Africa Israel consortium, recently reported that the Securities Authority had interrogated company officials as part of an investigation of a tender the company issued in January for the purchase of shares in its subsidiary, Negev Ceramics Ltd.