VTB informed the company AFI Development businessman Lev Levaev that its subsidiary Bellgate Construction Limited and Krown Investments LLC, which borrowers in the projects “Afimall city and Ozerkovskaya III”, unable in time to repay debt, Reuters reports citing the message of AFI Development on Wednesday.
The Bank believes that “daughters” AFI Development has faced “significant adverse changes in financial conditions” and also notes “other circumstances indicating that their obligations under the loan agreements may not be completed on time”, the company said. VTB has given the developer 30 days to eliminate adverse circumstances and reserved the right after the expiration of this period, to demand early repayment of debts, reported AFI Development.
“Group AFI Development is currently exploring opportunities to reach agreement on a settlement with Bank VTB” — said mark Groysman, CEO of AFI RUS management company AFI Development.
As at 31 December 2015, the balance of credit debt “Afimall city” was $415,8 million, project “Ozerkovskaya III” — $193 million, Reuters notes.
Company Bellgate Construction Ltd. and Krown Investments “significantly deviate from the previously agreed with the Bank financial models”, said on Wednesday the press service of VTB. The press service noted that this occurred “in connection with the currency revaluation.”
“In the near future, we expect debt repayment. We believe that companies have the ability to prepay the debt and hope to come to a constructive solution of this issue”, — said the press service of VTB.
The company AFI Development was founded in 2001 and is a subsidiary of the international holding Africa Israel Investments Ltd. Among the Russian company’s projects — shopping center “Afimoll city” in “Moscow-city”, business center “aquamarine III”, “Plaza H2O”, Riverside Station and others. Lev Leviev, which owns AFI Group, occupies the 23rd place in the ranking of the “Kings of Russian real estate” according to Forbes.
In July 2015, with reference to sources wrote that AFI Development has frozen construction projects in Moscow three office complexes under the General title of “Tverskaya Zastava” and wholesale shopping complex Expolon.