Africa Israel (TASE:AFIL) and Rosebud Medical (TASE:ROSB) are investing some $220 million in housing units in three Texan cities Dallas, Houston and San Antonio. The two companies today announced the signing of a memorandum of understanding with a group of American investors. Altogether they are buying 5,150 housing units for rent, situated in 19 neighborhoods in the three American cities.

The deal will be carried out through a joint company to be launched with the American partners. Africa Israel, which is controlled by Lev Leviev, will hold 50% of the company together with Rosebud.

The proportions of their share to be held by each of the Israeli companies, in another joint company to be established for that purpose, is not clear yet: Africa Israel and Rosebud are also negotiating to bring in a third Israeli partner, which would get 5% to 10% of the Israeli group.

Africa Israel manager Pini Cohen said that the partnership with Rosebud is strategic. The two companies have cooperated before. He added that the venture is Africa Israel's first in Amnerican real estate, and complies with Leviev's aim of expanding the company's international holdings in Eastern and Western Europe, and in North America.