2 September 2010
AFI DEVELOPMENT SECURES US$ 74 MILLION PROJECT LOAN FROM SBERBANK
AFI Development PLC ("AFI Development" or "the Company"), a leading real estate company focused on developing property in Russia and the CIS, today announces that it has obtained a 5-year US$ 74 million project loan from Sberbank.
The loan will be in Russian Ruble and will be used to complete construction works at the Ozerkovskaya Embankment Project (Phase III), in line with the Company's business plan for this year as announced on 18 January 2010.
The loan carries an initial interest rate of 13%. Following project completion, expected in 2011, the interest rate will be reduced to 11.75%.
The Ozerkovskaya Embankment development site comprises four individual development projects located within the prestigious business area of Zamoskvorechie. Phase III of the project that was put on hold at the outbreak of the financial crisis will comprise class A office buildings and apartments with total area of 75,500 sq. m. The Company has decided to resume this project in anticipation of improving demand for class A offices in prime locations of the City of Moscow and in light of negotiations with a number of potential tenants for this property.
Commenting, Alexander Khaldey, Director of AFI Development, said:
"Today's financing agreement represents another important step towards the successful implementation of our business plan for 2010 which envisages the resumption of construction works at the Ozerkovskaya Embankment development. Our track record from the first two phases of this project speaks for itself and we intend to make every effort to ensure that this trend continues throughout Phase III of the project. At the same time, we continue to monitor trends in the Russian real estate market with a view to potentially restarting further projects from our existing portfolio during the remainder of the year".
- ENDS -
For further information, please contact:
Natalia Ivanova +7 495 796 9988
Citigate Dewe Rogerson, London +44 20 7638 9571
About AFI Development
AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001 AFI Development is a publically traded subsidiary of Africa Israel Investments Ltd. Since 1934 Africa Israel Investment Ltd. has been an international investment holding with a unique 70-year experience in real estate development all over the world, including Europe and the United States.
In May of 2007 AFI Development was successfully admitted to the Main Market of the London Stock Exchange. Through its IPO the company raised a total of approximately US$1.4 billion. The company delivers 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 in Moscow, the Moscow Regions and other major Russian cities such as St. Petersburg, Perm, Volgograd, Kislovodsk. AFI Development has an unrivalled track record of consistent growth over recent years and today the company's existing portfolio has 29 development projects in 15 locations throughout Russia. Comprising 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 favorable 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 growth.
You are here: research