AFI Development PLC (AFRB) - VTB Bank purchases parking space at AFIMALL City RNS Number : 7645R AFI Development PLC 22 November 2012 THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN AFI DEVELOPMENT PLC ("AFI Development" or "the Company") VTB Bank purchases parking space at afimall city London, 22 November 2012 - AFI Development today announces that its subsidiary, Bellgate Construction Limited ("Bellgate"), has reached an agreement with VTB Bank OJSC ("VTB Bank") on the disposal of parking space in the underground parking at AFIMALL City. The parties expect the transaction to be executed in the coming weeks. The transaction is structured in two stages. The first stage will entail a sale-purchase transaction between Bellgate and VTB Bank on 21,354 sq.m. of parking space. During the second stage 9,247 sq.m. owned (at completion) by VTB Bank will be exchanged for 7,847 sq. m. owned by Bellgate. The exchange transaction is to be completed no later than three years from the execution date of the sale-purchase transaction. This two-tier transaction structure stems from the fact that part of the parking space that VTB Bank is interested in purchasing is located on a land plot to which Bellgate has not yet registered leasehold rights. The consideration for the sale-purchase transaction is US$57.1 million (excluding Russian VAT). The consideration for the exchange transaction, to be paid by Bellgate to VTB Bank, is US$2.6 million (excluding Russian VAT). All payments are to be made in Russian rouble. VTB Bank will be able to start using the parking space once the construction is fully completed by Bellgate. The resulting estimated total net cash flow for AFI Development is US$54.5 million. The transaction documents do not specify the number of parking spaces being purchased by VTB Bank, which will be able to allocate parking spaces and plan the configuration of the acquired parking space at its own discretion. The parties estimate the eventual number of parking spaces transacted at 643. Commenting on today's announcement, Mr Mark Groysman, Executive Director of AFI Development said: "We are pleased to announce that negotiations with our long term financing partner, VTB Bank, on the disposal of parking space at AFIMALL City has resulted in a mutually beneficial agreement. The bank will be able to provide employees located at its Moscow City headquarters with parking space they require, while Bellgate will receive disposal consideration that will help finance construction works in the parking complex. The transaction is not expected to have any negative influence on the parking capacity of AFIMALL City." - ENDS - For further information, please contact: AFI Development, +7 495 796 9988 Ilya Kutnov Ekaterina Shubina Citigate Dewe Rogerson, London+44 20 7638 9571 David Westover Reena Mavjee Sandra Novakov 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. 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. Legal Disclaimer Some of the information in these materials may contain projections or other forward-looking statements regarding future events, the future financial performance of the Company, its intentions, beliefs or current expectations and those of its officers, directors and employees concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies and business. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" or the negative of such terms or other similar expressions. These statements are only predictions and that actual events or results may differ materially. Unless otherwise required by applicable law, regulation or accounting standard, the Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations. This information is provided by RNS The company news service from the London Stock Exchange END MSCDMMZMVZNGZZG -0- Nov/22/2012 07:00 GMT
AFI Development PLC AFRB VTB Bank purchases parking space at AFIMALL City
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