AFI Development, the Russian unit of Africa-Israel Investments, has obtained two loan facilities totalling $414mln (EUR 267mln) from Russian lender VTB Bank.
AFI Development, the Russian unit of Africa-Israel Investments, has obtained two loan facilities totalling $414mln (EUR 267mln) from Russian lender VTB Bank.
London-listed AFI Development said it will use a three-year loan of $352mln to finance the construction phase of the largest shopping and entertainment project in the centre of Moscow. The Mall of Russia scheme incorporates just under 180,000 m2 of total area and 114,000 m2 GLA of retail and leisure space. The centre's leisure offering includes a multiplex cinema with 4D and 5D technologies, a skating-rink and more than 50 restaurants and cafes.
The final interest rate for the loan will be concluded upon signature of the loan agreement, which is expected to occur within the coming weeks. The second 1-year loan agreement, signed by AFI Development on 1 August 2008, is for $62mln.
Alexander Khaldey, CEO of the development company, said: 'Approval of these two loan facilities by VTB is of great importance for AFI Development, not only in terms of providing us with additional funds to complete one of our key existing projects, but also to demonstrate the strength of our position in the market and the ability to secure appropriate financing for our projects despite the current market environment.'
