Talks between Lev Leviev's unit and Alfa-Bank for space worth $350 million in the Ozerkovskaya project have been called off.
AFI Development plc (LSE:AFID), the Russian development arm of Lev Leviev-controlled Africa-Israel Investments Ltd. (TASE:AFIL) has failed in its attempts to sell space to Alfa-Bank in the Ozerkovskaya phase III project in Moscow, the Russian financial media reports. AFI Development and Alfa-Bank, the largest private commercial bank in Russia, had been in talks since May 2010.
Alfa-Bank has been looking for a new headquarters for its various activities for over four years. Reports suggested that Alfa-Bank was negotiating to buy three of the four buildings in the Ozerkovskaya Aquamarine project totaling 63,000 square meters. Estimates are that any deal would have been worth $350 million.
Sources in Russia believe that talks have been called off due to the uncertain economic situation in Europe.
Published by Globes, Israel business news - www.globes-online.com - on December 4, 2011
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