LEASING OF PAVELETSKAYA OFFICE COMPLEX

23 March 2011

LEASING OF PAVELETSKAYA OFFICE COMPLEX

AFI Development plc ("AFI Development" or the "Company") today announces that it has leased the Paveletskaya office complex to a single tenant ZAO GREENATOM, a subsidiary of the State Atomic Energy Corporation ROSATOM.

An 11-month lease agreement was signed with ZAO GREENATOM, which would roll over a 3-year period once the ownership certificate has been obtained, expected before year end.

With a total area of 16,500 sqm, including a total leasable area of 13,130 sqm, the Paveletskaya complex faces the Moscow river embankment and has a well-developed infrastructure, including cafes, restaurants, bank branches, conference facilities and a spacious open and underground parking. The aforementioned lease is Rouble based and is expected to yield a first year annualised revenue of approximately $4.7 Million VAT exclusive.

The Paveletskaya Complex is a renovation of manufacturing building to class B office centre and the first phase of a larger development project at Paveletskaya embankment.

Tzvia Leviev, Marketing, Asset Management and Business Development Director of AFI Development commented: "We are proud to announce our success in leasing out the Paveletskaya office complex on its completion. We are very pleased with the leasing price we were able to negotiate and the fact that we have obtained a sole tenant for the entire complex in ZAO GREENATOM. Despite the slow recovery of the office market, we maintained our confidence in the project and resumed its construction at the first signs of market improvement. This deal demonstrates our high standards of construction and development, which we believe will continue to drive our success."

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For further information, please contact:

AFI Development

Stanislav Joukov +7 495 796 9988

Natalia Ivanova

Citigate Dewe Rogerson, London +44 20 7638 9571

David Westover

Sandra Novakov

Lucie Holloway

About AFI Development

AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd.

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 and customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets in Moscow, the Moscow Region, and other major cities in Russia and the CIS. The Company's existing portfolio of 29 development projects comprises commercial projects focused on offices, shopping centres, 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 favourable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighbourhoods 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.

About ROSATOM

The State Atomic Energy Corporation ROSATOM incorporates more than 250 enterprises and scientific institutions, including all civil nuclear companies in Russia, nuclear weapons complex facilities, research organizations and the world's only nuclear-propelled fleet. ROSATOM is the largest utility in Russia which produces more than 40% of electricity in the European part of the country. ROSATOM holds leading positions in the world market of nuclear technologies being the 1st in the world simultaneous nuclear build abroad; 2nd in uranium reserves and 5th in uranium mining. ROSATOM is also the 4th in nuclear electricity generation, while providing 40% of the world uranium enrichment services and 17% of the world nuclear fuel market.