TEXT-AFI Development gets approval for Moscow complex

(The following was issued by AFI Development (AFIDLq.L: Quote, Profile, Research, Stock Buzz), 70 percent owned by Africa Israel Investments (AFIL01.TA: Quote, Profile, Research, Stock Buzz)):

Aug 20 - AFI Development PLC ("the Company"), the leading developer of unique, multi-purpose properties in Moscow, Russian regions and the CIS, today announces a key development in the regulatory approval process at one of its key projects, Kuntsevo.

The Company has received further approval in the form of a new Moscow Government Resolution granting the right to finance and procure town planning documentation for the Kuntsevo project through the Company's wholly owned subsidiary ZAO Armand.

The Kuntsevo project, independently appraised by Jones Lang LaSalle, was valued at US$ 0.7 billion as of December 2007 and US$ 7.6 billion at completion.

It involves the development and redevelopment of a traffic interchange in the area of the Kuntsevo metro station together with the construction of multi-purpose facilities including a mixed-use office complex, hotel premises, leisure and entertainment center, as well as various administrative and parking premises.

The resolution defines more detailed zoning for the future premises as well as precise geographical boundaries of the Kuntsevo project as previously approved by Moscow Land Committee. This includes a new development plot adjacent to the Aminevskoe, Rublevskoe and Mojaiskoe highways.

As a result of the addition of this land plot, as outlined in the resolution and based on the current zoning, the Company's overall development area has increased from 1.2 to 1.5 million sqm.

As the next step in the regulatory process, the Company is expecting to receive approval for the town planning documentation submitted to MoscomArchitectura, Moscow's Committee on Architecture and City Planning. At the same time, the Company will initiate preparation of the detailed designs necessary to obtain the Act of Permitted Use.

The Kuntsevo development is a large scale mixed use project including social, retail and office phases as well as multi-level car and pedestrian traffic interchange to connect all existing and proposed metro and railway stations, parking, retail areas and necessary technical facilities.

Commenting, Alexander Khaldey, Chief Executive Officer, said: "We are pleased to continue to demonstrate to the market our ability to always uphold the obligations we made to our investors at the time of the IPO. Our company continues to rigorously adhere to our outlined development strategy, with each well planned step taking us closer to the realization of our projects, thereby consistently increasing shareholder value."