Financing for AFIMALL City parking approved

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IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

AFI Development receives financing for AFIMALL City parking acquisition

London, 22 February 2012 - AFI Development Plc ("AFI Development" or "the Company") announces that its subsidiary Bellgate Construction Ltd ("Bellgate") has obtained a loan facility from VTB Bank to finance Bellgate's recent acquisition of the parking area under AFIMALL City (the acquisition was announced on 16 December 2011).

The loan, which totals RUR 4 billion (approximately US$ 134 million), will be provided on terms essentially similar to those on the existing AFIMALL City loans provided by VTB Bank.

The Company is continuing its negotiations with VTB Bank regarding a construction loan for the parking area, as well as VTB Bank's potential acquisition of around 600 parking lots. 

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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 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.