Tverskaya Plaza Ic land lease rights granted

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION

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

Land lease rights on Tverskaya Plaza Ic granted by the Moscow City Authorities

London, 21 September 2012 - AFI Development Plc ("AFI Development" or "the Company") today announces that the Moscow City authorities have published their official decision to grant leasehold rights to the land plot of the Tverskaya Plaza Ic project. The lease will be provided for 10 years for the development and construction of the project.

The Company believes that this decision by the Moscow City authorities is an essential step for the renewal of the leasing and development rights for the Tverskaya Plaza Ic project, which is the first of the three Tverskaya Plaza projects to be developed. These projects have been subject to a non-binding agreement with the Moscow City authorities following their decision not to proceed with the Tverskaya Zastava shopping centre (as announced by the Company on 29 November 2011).

Commenting on today's announcement, Mr. Mark Groysman, Executive Director of AFI Development, said: "The official publication of this decision about Tverskaya Plaza Ic demonstrates the City's commitment to implementing our non-binding agreement. We are confident that the City will continue with the plan to renew our land lease and development rights for the other projects, Tverskaya Plaza IIa and Tveskaya Plaza IV".

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For further information, please contact:

AFI Development, +7 495 796 9988

Ilya Kutnov

CitigateDeweRogerson, London +44 20 7638 9571

David Westover

Reena Mavjee

Sandra Novakov

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.