06 November 2013

AFI Development Sells Building At Moscow Office Complex For USD91.5M


LONDON (Alliance News) - Property developer AFI Development PLC Thursday said its plans to sell Building 1 at its Aquamarine III office complex in Moscow, which consists of four separate buildings and underground parking, to an undisclosed company for USD91.5 million.

The firm said the gross asset value of the premises being disposed is USD61.3 million and as the property is not leased, there are currently no profits attributable to the disposed premises.

AFI Development expects to receive net profit on the transaction of around USD14.6 million. Some of the proceeds will be used to repay an existing loan facility by VTB Bank JSC.

Completion of the transaction is subject to a condition that AFI Development removes the existing mortgage over the disposed premises and the land lease rights in favour of VTB Bank JSC.

AFI said VTB Bank JSC has already consented to the transaction and it expect the deals to be completed in December.

The stock was trading at 0.772 cents Thursday afternoon, down 0.002 cents or 0.3%.

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