AFI Development has announced the sale of its Kosinskaya project in Moscow for $195 mln (about EUR 138 mln). The project is located in the eastern administrative district of the Russian capital and comprises a Class B office building of 112,000 m[sup]2[/sup] and 10.4 hectares of land.
AFI Development has announced the sale of its Kosinskaya project in Moscow for $195 mln (about EUR 138 mln). The project is located in the eastern administrative district of the Russian capital and comprises a Class B office building of 112,000 m2 and 10.4 hectares of land.
The London-listed Russian real estate development arm of Israeli conglomerate Africa-Israel Investments said the purchase agreement had been signed with a 'non-related third-party buyer'.
The purchase price is payable over the course of 12 months. To date, AFI Development has received $40 mln of the first instalment of $60 mln that is payable by 20 August 2009. Under the agreed terms and conditions, the buyer is entitled to a discount of up to 7.7% if the full payment is made ahead of the payment schedule, with lower discounts applying the later the final payment is effected.
The contracted price reflects a $44.2 mln premium to the book value of the project at end-March 2009.
Alexander Khaldey, CEO of AFI Development, said: 'We are delighted to finalise this transaction at such a significant premium to the book value and to the previous valuation, which demonstrates the strong underlying interest among investors in the Moscow property market, even in the current economic uncertainty. We believe that continued stabilisation of the market will benefit our significant portfolio of assets and enhance the value of our company to its shareholders, reflecting the long-term growth outlook for Moscow real estate. This sale further strengthens our already strong cash position, which is of paramount importance in the current market environment.'
Click on the link below to read: 'AFI Development posts pre-tax profit of EUR 197m for H1'
