AFI DEVELOPMENT EXTENDS ITS GDR PROGRAMME

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION

IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

AFI DEVELOPMENT PLC

("AFI DEVELOPMENT" OR THE "COMPANY")

AFI DEVELOPMENT EXTENDS ITS GDR PROGRAMME

London, 21 March 2017 - AFI Development announces that it has reached an agreement with the Bank of New York Mellon on the extension of the Company's Global Depositary Receipts (GDR) programme for an additional three years, until 19 March 2020.

Under the new terms, the annual Depositary Service Fee charged to GDR holders shall be limited to US$0.002 per GDR, provided that the price of the GDR remains under US$1.

- ENDS -

For further information, please contact:

AFI Development, Moscow +7 495 796 9988

Ilya Kutnov, Corporate Affairs/Investments Director

(Responsible for arranging the release of this announcement)

Citigate Dewe Rogerson, London +44 20 7638 9571

David Westover

Sandra Novakov

This announcement contains inside information.

About AFI Development

Established in 2003, AFI Development is one of the leading real estate development companies operating in Russia.

AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction and quality of customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets across Russia, with Moscow being its main market. The Company's existing portfolio comprises commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighborhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.