AFI Development plc (LSE:AFID), the Russian development arm of Lev Leviev's Africa-Israel Investments Ltd. (TASE:AFIL), has obtained a five-year $74 million loan from Russia's Sberbank. The company will use the proceeds to complete construction on Phase III of the Ozerkovskaya Embankment project in Moscow. The loan is in rubles.
AFI Development announced in January that it planned to complete Ozerkovskaya Embankment project as part of the company's business plan for 2010. Completion is scheduled for 2011.
The Ozerkovskaya Embankment comprises four development projects located within Moscow's prestigious business area of Zamoskvorechie. Phase III of the project, which 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 square meters. AFI Development said that it resumed construction in anticipation of improving demand for class A offices in prime locations in Moscow and in light of negotiations with a number of potential tenants.
AFI Development director Alexander Khaldey said, "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."
AFI Development's share price rose 0.7% at the opening on the London Stock Exchange to $0.78, giving a market cap of ₤336 million. Africa-Israel's share price rose 1.4% in morning trading on the TASE to NIS 20.07, giving a market cap of NIS 2.08 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on September 2, 2010
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