07 November 2013

AFI DEVELOPMENT DISPOSES BUILDING 1 IN AQUAMARINE III

  • Press Release

London, 7 November 2013 – AFI Development today announces that it has reached binding agreement to dispose of Building 1 in the Aquamarine III office complex in Moscow (also known as Ozerkovskaya III), which consists of four separate buildings and underground parking ("the Complex").

Under the transaction, Krown Investments LLC, the subsidiary holding rights to Aquamarine III, sells premises of the first building in the Complex and part of underground premises with gross area of 10,985.8 sq.m., a terrace of 418.9 sq.m. and approximately a 15.8% share in the title to common areas of the Complex, which total 3,728.6 sq.m. (total transacted area corresponds to approximately 11,994 sq.m.), to a Russian state controlled corporation. The consideration is to be paid in cash and amounts to Russian rouble equivalent of US$91.5 million and applicable Russian VAT.

The gross asset value of the premises being disposed is US$61.3 million (as at 30 June 2013). Due to the fact that 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 in the amount of approximately US$14.6 million.

The sale proceeds will be used by the Company primarily for partial repayment of the 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. VTB Bank JSC has already consented to the transaction. The Company expects the transaction to be completed in December 2013.

Commenting on today's announcement, Mr Mark Groysman, Executive Director of AFI Development said: "We are very pleased to announce the disposal of the first building within our Aquamarine III office complex. We are confident that the transaction terms are beneficial for AFI Development and its shareholders. This sale is in line with our strategy of disposing of our completed developments for a favourable consideration".

For further information, please contact:

AFI Development, Moscow +7 495 796 9988
Ilya Kutnov
Ekaterina Shubina
Citigate Dewe Rogerson, London +44 20 7638 9571
David Westover
Sandra Novakov Shelly Chadda

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 favourable return.

FI 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.

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