AFI Development : PARTIAL REPAYMENT OF AFIMALL CITY LOAN

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 PARTIALLY REPAYS THE AFIMALL CITY LOAN

London, 26 June 2019 - AFI Development today announces that its subsidiary, Bellgate Constructions Limited ('Bellgate'), has partially repaid the euro-denominated part of the AFIMALL City project loan to VTB Bank PJSC, in the amount of EUR 60 million.

Prior to this repayment, Bellgate had a loan from VTB Bank PJSC with a total balance of US$ 476.3 million (in euros and in Russian roubles). Following the repayment, the balance of the euro-denominated part of the loan has decreased from EUR 282.0 million to EUR 222.0 million and the total loan balance to US$ 408.11 million.

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For further information, please contact:

AFI Development, +7 495 796 9988

Ilya Kutnov, Corporate Affairs/Investments Director (Responsible for arranging the release of this announcement)

Citigate Dewe Rogerson, London+44 20 7638 9571

Sandra Novakov

Lucy Eyles

This announcement contains inside information.

About AFI Development

Established in 2001, AFI Development is one of the leading real estate development companies operating in Russia.

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 of 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.