AFI Development buys remaining stake in Moscow project

AFI Development has agreed to buy out its partner for the sole ownership of the Ozerkovskaya real estate project in central Moscow.

AFI Development has agreed to buy out its partner for the sole ownership of the Ozerkovskaya real estate project in central Moscow.

The property development group said it would purchase the remaining 50% interest from joint venture partner Super Passion for $230m. It will also settle outstanding liabilities to its subsidiary Krown Investments.

The consideration will be paid in instalments, with the first $100m made within three business days of the agreement. The last instalment of $10m will be due by the end of 2013.

Krown Investments is a Russian subsidiary of AFI Development which currently holds the rights to the Ozerkovskaya project.

The property includes the Ozerkovskaya Phase II residential complex and the Ozerkovskaya Phase III office complex which has four separate buildings for let.

The gross asset value of the 50% interest in Ozerkovskaya II and Ozerkovskaya III, which are now both complete, is about $200m.

Mark Groysman, Executive Director of AFI Development said: "We are pleased to announce that we have reached an agreement to buy out the remaining 50% stake of our partner in Ozerkovskaya; this transaction will allow us greater flexibility in negotiations with potential buyers of this property in whole or in part."

Shares were up 9.98% to $0.65 at 14:55 Friday.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021