Bethel Finance news:
Africa-Israel Investments Ltd. (TASE:AFIL) Russian real estate arm AFI Development plc (LSE:AFID) has set the grand opening of the AFIMall in Moscow for May 22. The soft opening was held on March 10. The company estimates that the mall will generate $60 million in rental revenue in 2011and $88 million in annual rental revenue..
The 180,000-square meter AFIMall has 400 stores and will be the largest mall in the Russian capital.
AFI Development said that, as of April 27, 151 stores covering 42% of the mall's space were already open.
AFI Development believes that 200 stores representing 61% of the mall's area, will be leased by the grand opening. The company has signed leases for 78% of the mall's area.
AFI Development owns 75% of the AFIMall, and has reached a non-binding understanding with the Moscow City administration to buy its 25% stake in the mall.
IBI Investment House analyst Shay Lipman told "Globes", "Without a doubt, this will have a positive effect on Africa-Israel's share. I assume that the AFIMall's occupancy rate will only increase. It should be realized that for any mall, as a new real estate development, needs a running-in period, which Africa-Israel is currently undergoing."
Lipman added, "The main point is that in 2012, the mall will become an income-producing property, at which point it will generate substantial revenue for AFI Development, and indirectly for Africa-Israel, which is increasing its stake in AFI Development. I would not be surprised if the mall's value is upwardly revised by the second quarter of 2012, which will greatly boost Africa-Israel's capital."
AFI Development's share price opened at $1.10 on the London Stock Exchange today, giving a market cap of ₤712 million. Africa-Israel's share price rose 2.4% in early trading to NIS 28.35, giving a market cap of NIS 2.92 billion.
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