AFI Development bought the 25% stake in the mall held by the Moscow Municipality for $157 million.
AFI Development plc (LSE:AFID), the Russian development arm of Lev Leviev-controlled Africa-Israel Investments Ltd. (TASE:AFIL) has completed its acquisition of the AFIMall City mall in Moscow. It bought the 25% of the mall owned by the Moscow City Municipality, for $157 million (5 billion rubles), giving it full-ownership. The company financed the acquisition with credit from the Russian bank that financed the construction of the mall.
Africa-Israel added that AFI Development's additional credit line from the bank brings the total credit line to 8.4 billion rubles ($263.5 million at the prevailing exchange rate). The loan carries 11.5% annual interest until the registration of the mortgage on the mall, and 9.5% thereafter. The interest is paid in quarterly installments and the principal will be repaid in a single installment in August 2013.
Africa-Israel owns 63.7% of AFI Development, whose share price rose 11.2% on the London Stock Exchange on Friday to $0.50, giving a market cap of ₤263 million. Africa-Israel's share price fell 1% by midday on the TASE today to NIS 11.25, giving a market cap of NIS 1.3 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2011
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