AFI Development plc (LSE:AFID) today announced that it has achieved significant progress in its negotiations with the City of Moscow to buy its stake in the AFIMall City's parking garage for $128 million in installments through 2014. The parking garage is 65% completed.
AFI Development bought out the City of Moscow's 25% stake in the AFIMall City earlier this year.
AFI Development added that it was in advanced negotiations with VTB Bank for a loan to finance the acquisition. The bank, which is headquartered in the Federation Tower next door to the mall, is also interested in buying 600 parking spaces, and the parties are in talks on a deal.
AFI Development is the Russian development arm of Africa-Israel Investments Ltd. (TASE:AFIL), controlled by chairman Lev Leviev. AFI Development's share price fell 1.6% today to ₤0.46, giving a market cap of ₤220 million, and Africa-Israel's share price fell 1% to NIS 11.37, giving a market cap of NIS 1.36 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011