5 May 2011 07:00
5 May 2011
AFIMALL CITY
AFI Development plc ("AFI Development" or the "Company") today provides an update on "AFIMALL City", its new shopping centre in Moscow (the "Mall").
The "soft opening" of the Mall occurred on 10 March 2011. At that time, some of the Mall's principle systems were not yet active, and since then, the number of shops open to the public has risen gradually.
As of 27 April 2011, 151 shops, representing approximately 42% of the Mall's rental space, were open to the public.
An official grand opening event has now been set for 22 May 2011. AFI Development estimates that by this date, 200 shops, representing approximately 61% of the Mall's rental space will be open.
There are currently signed rental agreements with respect to approximately 78% of the Mall's rental space. AFI Development estimates that the percentage of space rented out of the total lettable space will remain unchanged until the official opening on 22 May.
The signed rental agreements as at the date of this report reflect projected annual revenues of approximately USD 88 million. Some of the rental agreements include temporary arrangements of discounts or waivers of rent payment for set periods which the Company currently anticipates will expire in November 2011. The expected revenues will be received in full only after the expiration of these temporary arrangements. According to the signed agreements as at the date of this report, the total amount of rent expected to be received in 2011 for these agreements is approximately USD 60 million.
The figures above reflect a 100% interest in the Mall, whereas AFI Development currently has a 75% interest in the Mall. As previously announced, the Company has reached a non-binding understanding with the Moscow City administration regarding the purchase from the City of Moscow of its 25% share in the Mall.
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For further information, please contact:
AFI Development
Stanislav Joukov +7 495 796 9988
Natalia Ivanova
Citigate Dewe Rogerson, London +44 20 7638 9571
David Westover
Lucie Holloway
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 centres, 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 favourable return.
AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighbourhoods 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.