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Last update - 02:52 21/08/2008 Moscow gives nod to AFI's $7.6 billion project By Michael Rochvarger Tags: Moscow, Israel The city of Moscow has all but given the final green light to Africa Israel's $7.6-billion project for Kuntsevo. The plan calls for a gigantic complex, including a hotel, mall, offices and the restructuring of the entire intersection at the neighborhood subway station. Specifically, the city has agreed to allow ZAO Armand, a subsidiary of Lev Leviev's AFI Development, to finance and procure planning paperwork for the ambitious project, as AFI advised the London Stock Exchange yesterday. The city of Moscow issued an official resolution that specifies the geographic boundaries of the Kuntsevo project. The adjustments increase the project area from 1.2 million square meters to 1.5 million square meters, for one thing. As in the case of the Tverskaya Mall, AFI is pursuing the mixed-use Kuntsevo project in collaboration with the local authorities. The next step involves finalizing its designs and obtaining the blessing of MoscomArchitectura, Moscow's Committee on Architecture and City Planning. In response to the news, AFI stock gained 2.7% in London. That is probably chilly comfort to investors, however, considering that the company's share price has lost 64% since its initial public offering in May 2007. AFI's market capitalization is presently about $2.6 billion, which is just double the amount it raised at the time, $1.3 billion. Advertisement The international property appraisals company Jones Lang LaSalle estimated, at year-end 2007, that the Kuntsevo project was worth $700 million before development, and would be valued at $7.6 billion afterwards. During AFI's road show in London before its IPO, analysts and potential shareholders asked management whether there was really a chance that a project as vast as Kuntsevo could really take off. "We were optimistic at the time," says Africa Israel vice chairman Nadav Grinshpon, who played an active role in AFI's flotation. AFI is presently working on the final design, Grinshpon says, and expects that construction can start in a year, or a bit more. He expects the entire project to be completed toward the end of 2012, and hasn't ruled out the possibility that before that date, AFI will bring additional partners into the project. AFI hasn't begun addressing the issue of financing yet, Grinshpon says, but despite the times he isn't expecting problems. Nor does he feel that the tensions with Georgia have created problems in Russia itself, he adds. "Africa has been in Russia during bigger revolutions, and it will continue to operate here in the future as well." Bookmark to del.icio.us   Tears of joy Shahar Zubari's bronze medal was Israel's first of the 2008 Beijing Olympics. 'Germ of corruption' Mahmoud Ahmadinejad repeats his prediction that Israel will be wiped off the map.

Read & React Ahmadinejad: Israel is a germ of corruption that will be removed Responses: 139 Israel warns nationals of Hezbollah kidnap threat abroad Responses: 37 Sheetrit: Israel must not attack Iran, except in line of defense Responses: 26 Meron Benvenisti: Israel's greatest fear is a one-state solution Responses: 72 More Headlines 00:40 U.S. to Syria: Do not meddle in Russia-Georgia conflict 19:04 Livni: Time is running out for peace talks with Palestinians 16:28 State orders West Bank fence rerouted in favor of Palestinians 02:26 ANALYSIS / Fence relocation is acknowledgment that route is politically motivated 02:46 Prosecution to seek immunity for Talansky in U.S. 02:45 Barak: I'm not worried about being removed before elections 01:47 Study: Babies in womb during Six-Day War more likely to have schizophrenia 00:10 IN PICTURES / Olympians display their body art 00:26 Israeli tennis star Shahar Peer leads master class for N.Y. children 21:32 Life of top television presenter threatened, possibly by 'psychic' interviewee 22:28 Jordan urges world to press Israel to halt E. Jerusalem excavations 02:09 Israeli terror victims sue Chinese bank for funding Hamas, Islamic Jihad 19:47 Israel removes West Bank roadblock outside Ramallah 01:08 Happy birthday, Mr. President! Peres marks his 85th with trip to Negev Previous Editions Select Day 21 aug 20 aug 19 aug 18 aug 17 aug 15 aug 14 aug 13 aug 12 aug 11 aug 10 aug 08 aug

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