30 Sep 2011 14:38
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION
IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
AFI Development completed the acquisition of City share at AFIMALL City
London, 30 September 2011 - AFI Development Plc. ("AFI Development" or "the Company") today announces that its subsidiary, Bellgate Construction Ltd, which is a party to the investment contract with the Moscow City Government in relation to AFIMALL City (the "Investment Contract"), has completed the acquisition of the 25% stake at AFIMALL City, held by the City of Moscow. The total consideration of RUR 5 billion (approximately US$157 million) includes VAT of about US$ 24 million. Following the payment, Bellgate Construction Ltd will be entitled to 100% of the areas in AFIMALL City under the Investment Contract.
The transaction was financed in full by an additional facility with VTB BANK (OJSC), provided on the same terms as the current AFIMALL City loan (of RUR 8.4 billion, approximately US$ 263.5 million, with an interest rate of 11.5% p.a. prior to mortgage registration, 9.5% p.a. after the mortgage registration in Rouble terms, straight bullet in August 2013).
Successful completion of the City share buy-out transaction at AFIMALL City is an important milestone for the Company's flagship project. AFI Development's ability to secure full financing for the transaction is evidence of its reliability and strong position in the Russian real estate market.
AFI Development continues its negotiations with the City of Moscow on acquisition of the parking facilities underneath AFIMALL City.
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For further information, please contact:
AFI Development, +7 495 796 9988
Alexander Adadurov
Ilya Kutnov
Citigate Dewe Rogerson, London +44 20 7638 9571
David Westover
Sean Bride
About AFI Development
AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd.
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 in Moscow, the Moscow Region, and other major cities in Russia and the CIS. The Company's existing portfolio of 30 development projects 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.