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AFI DEVELOPMENT PLC

("AFI DEVELOPMENT" OR "THE COMPANY")

NOTIFICATION OF APPOINTMENT OF A NEW DIRECTOR

London, 20 January 2017 - AFI Development announces that today its Board of Directors has appointed a new non-executive independent director, Mr David Tahan, effective from 20 January 2017.

Mr Tahan works as a Chief Investment Officer at Manray Partners Limited in London and is a highly experienced investment professional. Between 1999 and 2009, Mr Tahan worked at Goldman Sachs International in the Equities Division and Investment Management Division.

Mr Tahan does not hold other directorship positions in publicly quoted companies and has not held such positions in the previous five years. He has no unspent convictions in relation to indictable offences. Mr Tahan has not (i) whilst a director, or within 12 months preceding such events, been associated with any receiverships, compulsory liquidations, creditors voluntary liquidations, administrations, company voluntary arrangements or any composition or arrangement with its creditors generally or any class of its creditors of any company whilst acting as an executive director; (ii) whilst a partner, or within 12 months preceding such events, been associated with any compulsory liquidations, administrations or partnership voluntary arrangements of any partnerships whilst acting as a partner; (iii) whilst a director, or within 12 months preceding such events, held assets which have been the subject of a receivership; (iv) whilst a partner, or within 12 months preceding such events, been partner of any partnership preceding any receivership of the assets of such partnership; (iv) been declared bankrupt or entered into any individual voluntary arrangements; (v) been subject to any public incrimination and/or sanction by statutory or regulatory authorities (including designated professional bodies); or (vi) been disqualified by a court from acting as a member of the administrative, management or supervisory body of any company or from acting in the management or conduct of the affairs of any company.

Commenting on today's announcement, Mr Lev Leviev, Executive Chairman of AFI Development, said: "We are delighted to welcome Mr Tahan to the Board of AFI Development as a non-executive director. He brings with him a wealth of experience which will be of immense value to AFI Development in the years to come."

- ENDS -

For further information, please contact:

AFI Development, +7 495 796 9988

Ilya Kutnov

Citigate Dewe Rogerson, London +44 20 7638 9571

David Westover

Sandra Novakov

About AFI Development

Established in 2001, 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.