AFI buys Moscow’s Share of AFI Mall for $310M

MOSCOW-Russian developer AFI has reached a non-binding agreement with the city to buy its 25% stake in AFI Mall City for $310 million and transfer its development rights in the Tverskaya Zastava downtown shopping center to the city in exchange for full compensation for costs to date, possibly in the form of additional building rights for other projects.

Company chairman Lev Leviev said AFI supports Moscow Mayor Sergey Sobyanin’s plans to enhance road transportation and is satisfied with the decision to allow it to continue to  develop the Tverskaya surroundings while receiving compensation for work completed on the mall. Moscow plans to convert the retail space into underground parking, while AFI remains owner of the projects surrounding Tverskaya – nearly four million square feet of commercial and residential space, with planning permission remaining in place.