AFI Development sells Moscow building

The sale was at a premium on recent valuations.

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) subsidiary AFI Development plc (LSE:AFID) and has sold its 50% stake in the Aquamarine II building, part of Phase II of the company's Ozerkovskaya Embankment Project, in central Moscow, for $207 million. The yield on the sale is 6.8%, and the company will report a capital gain of $35 million on the sale. AFI Development's partner in the building also sold its stake.

The sale was made at a 50% premium on the valuation given to the property by John Lang Lasalle in late 2007.

The 16,372-square meter building is fully leased to a single tenant at $14 million per year in rent. Construction of the Aquamarine II project began in 2006. AFI Development previously sold the Aquamarine I building for $54.2 million in 2005 and made a capital gain of $32 million on the sale. The same buyer bought both properties, and is also AFI Development's partner in Phase II and III of the Ozerkovskaya Embankment Project.

Published by Globes [online], Israel business news - - on May 20, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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