London, 23 September 2014 – In reaction to yesterday’s Russian media reports on the decision of the Town Planning and Land Commission of Moscow to allocate a land plot for lease to AFI Medical for the development of an oncology centre, the Company announces as follows:
On 7 June 2013, AFI Development announced that it was considering potential investment in the development of oncology centres in Moscow. Since then, the Company has been undertaking a feasibility study to assess the case for such investment. As part of this process, AFI Development submitted a query to the land authorities of Moscow regarding suitable land plots that the City would allocate for such development.
Today, the Company confirms the decision of the Town Planning and Land Commission of Moscow to allocate a 9.79 ha land plot under short-term lease for the potential development of oncology centre to AFI Medical LLC, a subsidiary of AFI Development which was established to facilitate the feasibility study. The land plot, located in the South Butovo district of Moscow, was previously zoned by the City for a municipal medical facility. It should be noted that as of today the Company has not yet received full version of the Commission decision.
Whilst AFI Development’s ability to obtain a suitable land plot with appropriate physical characteristics is an important parameter of the feasibility study, the amount of rent to be charged to the Company for use of this land plot has not yet been established. As such, the Company has not yet made a decision to lease this plot.If appropriate, following completion of the feasibility study, a proposal will be put forward to the Board of Directors of AFI Development for approval.