Refinancing of Ozerkovskaya III

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 REFINANCES OZERKOVSKAYA III

London, 28 January 2013 - AFI Development Plc ("AFI Development" or "the Company") today announces that its subsidiary Krown Investments Ltd ("Krown"), which developed the recently completed Ozerkovskaya III office project, has signed a loan facility agreement with VTB Bank OJCS ("the Bank") to refinance its construction costs related to the development of Ozerkovskaya III. These costs were initially financed by intra-group loans provided by companies within the AFI Development group.

The new loan facility offers a credit line totaling US$220 million and carries an annual interest rate of 3 months LIBOR + 5.7%. The credit line can be drawn down in US Dollars in two tranches: the first tranche of US$150 million can be drawn down within 14 days from execution of the loan facility agreement, while the second tranche of US$70 million can be drawn down between 1 March 2013 and 14 March 2013.

The credit line matures on the 732nd day from the date the first tranche is drawn down. During the term of the loan, only interest is payable to the lender (in quarterly payments), whilst the principal is to be repaid in full at maturity.

Under the loan facility agreement, AFI Development Plc. has provided a guarantee to the Bank for the full amount of the loan and has pledged Krown's shares in favour of the Bank. In addition, the premises at Ozerkovskaya III are to be mortgaged in favour of the Bank. The loan facility agreement is subject to additional terms and conditions, in line with the Bank's standard lending policies.

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For further information, please contact:

AFI Development, Moscow +7 495 796 9988

Ilya Kutnov

Ekaterina Shubina

Citigate Dewe Rogerson, London+44 20 7638 9571

David Westover

Sandra Novakov

Reena Mavjee

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 favourable 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.