14th Nov 2013 15:57
LONDON (Alliance News) - Russian property developer AFI Development PLC Thursday said it will book a gross valuation gain of USD81 million in the third quarter after it got agreement from Moscow City authorities to amend the land use permit for the Paveletskaya Phase II project to residential and commercial.
The permit previously stipulated that land was for industrial use.
The permit change provides the level of certainty required for the company to book a higher fair value for the project on the balance sheet, AFI said. The company's independent valuers, Cushman & Wakefield, have given the project a market value of USD92.6 million compared with the current book value of USD11.6 million. The gain will be USD64.8 million after tax.
AFI Development develops and re-develops commercial and residential properties, including offices, shopping centres, hotels and apartments, mainly in Moscow. It the sells on the residential properties and either leases the commercial properties or sells them for a favourable return.
The company is allowed to construct 151,373 square metres of building at Paveletskaya Phase II.
AFI Development shares were last traded at 0.780 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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