Parking Area Acquisition at AFIMALL City

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION

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

Parking Area Acquisition at AFIMALL City

London, 24 November 2011 - AFI Development Plc ("AFI Development" or "the Company") announces that it has achieved significant progress in its negotiations with the City of Moscow regarding the acquisition of the parking area under AFIMALL City. According to the transaction terms, preliminarily agreed between the parties, the Company will pay a total consideration of RUR 4 billion, including VAT (circa US$128 million, including VAT) for the parking complex, the construction of which is approximately 65% completed. Under the schedule of payments, which is currently under discussion, the consideration is expected to be paid in several tranches, with the last tranche payable in 2014.

The Company is also in advanced negotiations with VTB Bank on debt financing of the parking area acquisition and, following construction, VTB Bank, the headquarters of which are located in the Federation Tower next to AFIMALL City, has indicated its interest in acquiring 600 parking lots in the parking area under AFIMALL City. AFI Development and VTB Bank are negotiating the terms of the parking area acquisition by the bank in parallel with the acquisition/construction finance package.

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For further information, please contact:

AFI Development, +7 495 796 9988

Alexander Adadurov

Ilya Kutnov

Citigate Dewe Rogerson, London+44 20 7638 9571

David Westover

Sean Bride

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 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.