AFI Development Updates Its Construction Plans for 2010
OREANDA-NEWS. January 21, 2010. AFI Development posted a business update. The main points are as follows: - the completion date for the Mall of Russia has been delayed by 3-4 months to Sept-Oct 2010, reported the press-centre of OTKRITIE Financial Corporation.
The Mall of Russia is the company’s core project, which AFI says is already 40% pre-let, with preliminary agreements in place for another 30-35% gross leasable area. - construction of the Paveletskaya and Ozerkovskaya projects has resumed, Tverskaya construction is proceeding according to the schedule, the company managed to secure a new RUB600m (US20m) loan from Sberbank construction of the Kalinina Hotel at a rate of 9.25%.
View: Though completion of the Mall of Russia has been delayed, we see this news as positive since the company managed to pre-let 40% of the space, and was able to find financing for its other projects.
Valuation and Action: At present, we do not cover the stock.
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