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
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020