Tuesday, December 6, 2011

Bethel Finance: Russian bank ends talks to buy AFI's Moscow project

www.bethelfinance.com

Bethel Finance news:

AFI Development plc , the Russian development arm of Lev Leviev-controlled Africa-Israel Investments Ltd. (TASE:AFIL) has failed in its attempts to sell space to Alfa-Bank in the Ozerkovskaya phase III project in Moscow, the Russian financial media reports. AFI Development and Alfa-Bank, the largest private commercial bank in Russia, had been in talks since May 2010.

Alfa-Bank has been looking for a new headquarters for its various activities for over four years. Reports suggested that Alfa-Bank was negotiating to buy three of the four buildings in the Ozerkovskaya Aquamarine project totaling 63,000 square meters. Estimates are that any deal would have been worth $350 million.

Sources in Russia believe that talks have been called off due to the uncertain economic situation in Europe.

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