18 December 2014

AFI DEVELOPMENT RECOVERS BOTANIC GARDEN PROJECT

London, 18 December 2014 – AFI Development announces that it has today restored the Botanic Garden project on its financial statements, following liquidation of former primary investor, Novoe Koltso Moskvy OJSC (“NKM”).

As previously announced on 16 October 2014, a Moscow court had decided to liquidate NKM, resuming its bankruptcy proceedings. A liquidation record has now been entered into the State Registry of Legal Entities.

As risks related to the bankruptcy of NKM have now been removed, AFI Development has restored the project on its balance sheet. However, according to the current position of the Company external appraisers, due to extreme volatility of the exchange rate of the Russian rouble to US dollar, the recent decision of the Central Bank of the Russian Federation to increase the key lending rate from 10.5% to 17%  and non-systemic market fluctuations, the market value of the development rights of AFI Development in the project as of today cannot be established in a comprehensive way. It should be noted that the valuation of the project as of 31 December 2014 will be established in due course.

For further information, please contact:

AFI Development, Moscow +7 495 796 9988

Ilya Kutnov
Ekaterina Shubina

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