AFI Development PLC AFRB VTB Bank purchases parking space at AFIMALL City

  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
 
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MSCDMMZMVZNGZZG -0- Nov/22/2012 07:00 GMT