AFI DEVELOPMENT IS PLANNING TO BUY 49. 9% OF SHOPPING AND HOTEL COMPLEX OF ARA ABRAMYAN

SKRIN Market & Corporate News
April 28, 2008 Monday 11:23 AM GMT

AFI Development owned by Lev Levaev and Alexander Khaldei can become
a co-owner of a new project at Moscow International Business Center
(MIBC) Moscow City.

The developer is now in talks to buy 49, 9% of the shopping and hotel
complex (50, 2 sq. m) that is being built on plot N8a by a company
owned by Ara Abramyan, Chairman of the Union of Armenians of Russia,
according to Kommersant.

Experts say that deals related to Moscow City are really rare: there
is already a pool of final owners who are intending to complete
the projects.

The investor and project owner of the shopping and hotel complex
construction located at plot N8a in Moscow City is OAO VTPK Merkuriy,
a part of ZAO Soglasie. Market insiders believe that Chairman of The
Union of Armenians in Russia Ara Abramyan is both the President of
the ZAO Sogralize and its owner.

The news on AFI Development finalizing a deal on buying a share in the
hotel was submitted to Kommersant by a source close to AFI. According
to the insider, the company had been trying to enter the project
because it is adjoining plots N7 and N8B which are occupied by Mall
of Russia (179, 000 sq. m). The project of ZAO Soglasie, Mall of
Russia and the cinema and concert complex built by AFI on plot N6 all
make the core of the Moscow International Business Center and have a
common transport infrastructure, i.e. the entrance to the parking of
the shopping center is made via the hotel complex. "AFI wanted to buy
out the hotel yet Soglasie preferred to stay in the project keeping
the control," explained the source to Kommersant. He also added that
the price of the deal is more then 40 mln US dollars. Deputy Director
of Consulting for Colliers International Marina Smirnova believes
the amount of 40-50 mln US dollars is a fair market price.

President of ZAO Soglasie Ara Abramyan described the relations with AFI
as neighbors and assured that he knows nothing about the negotiations
on selling the share. Top Manager of Sograsie Marat Oganesyan could
not confirm nor dispose the information on the deal pleading that he
had not aligned his position with AFI.

AFI Development confirmed the talks with Soglasie to Kommersant. As
it was explained by the General Director of AFI Development Alexander
Khaldei, "In order to function integrally and keep the continuity
of construction circle of the core of MIBC, AFI Development made a
strategic decision to enter into partnership agreement on the project
of construction shopping and hotel complex adjoining the plot of Mall
of Russia," cre.ru said.

From: Emil Lazarian | Ararat NewsPress