As "Globes" reported in November, AFI Development plc (LSE:AFID), the Russian development arm of Africa-Israel Investments Ltd. (TASE:AFIL) controlled by Lev Leviev, will pay $126 million for the AFIMall City parking lot in Moscow. The lot has underground parking for 2,700 vehicles.
In an announcement to the TASE, Africa-Israel reported that its subsidiary AFI Development will soon sign an agreement with the City of Moscow, which includes transferring parking and registration rights. According to the report, AFI Development will pay for the parking lot in three installments: one-third of the amount will be paid by February 12, 2012, an additional third will be paid by February 12, 2013, and the last third will be paid by February 12, 2014.
As of today, 65% of parking lot construction has been completed. Upon completion, AFI Development will transfer a portion of space in the lot to the City of Moscow for $390,000.
AFI Development says that rights to the parking lot will be transferred close to the date of the first payment, in another two and a half months, subject to acceptance and suitability tests to be carried by AFI Development. Meanwhile, AFI Development is continuing negotiations with VTB Bank for a loan to finance the acquisition and complete construction of the parking lot. The bank, which is headquartered in the Federation Tower next door to the mall, is also interested in buying 600 parking spaces, and the parties are in talks on a deal.
Published by Globes [online], Israel business news - www.globes-online.com - on December 18, 2011
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