23 Dec 2016 10:08
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION
IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
AFI DEVELOPMENT PLC
("AFI DEVELOPMENT" OR THE "COMPANY")
AFI DEVELOPMENT AGREES TO ACQUIRE A 50% STAKE IN PLAZA SPA KISLOVODSK
London, 23 December 2016 - AFI Development Plc announces that its subsidiary, AFI Development Hotels Limited ("AFID Hotels"), has reached an agreement to acquire a 50% stake in the Plaza Spa Kislovodsk project ("the Project") from its partner.
AFID Hotels will indirectly acquire 50% stakes in the companies holding the Project, Nuana Limited and Craespon Management Limited, for a cash consideration of US$6.5 million, subject to insignificant adjustments. In addition to acquiring the stakes in the project companies, AFI Development will repay the loans of the project companies to companies of AFI Development's partner in the Project in the amount of US$16 million. The transaction is expected to be completed by the end of February 2017.
The Project is an operating spa resort hotel in the Caucasian mineral waters region, in the town of Kislovodsk. It has 275 guest rooms and a gross buildable area of 25,000 sq.m.
The acquisition transaction, if completed, will enable the Company to consolidate 100% of the Project.
- ENDS -
For further information, please contact:
AFI Development, +7 495 796 9988
Ilya Kutnov, Corporate Affairs/Investments Director (Responsible for arranging the release of this announcement)
Citigate Dewe Rogerson, London +44 20 7638 9571
David Westover
Sandra Novakov
This announcement contains inside information.
About AFI Development
Established in 2003, AFI Development is one of the leading real estate development companies operating in Russia.
AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction and quality and customer service.
AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets across Russia, with Moscow being its main market. The Company's existing portfolio comprises commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.
AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighborhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.