|
EBRD provides $34.4 million to Terminal Brovary
Class A logistics centre to reduce warehouse space deficit in Ukraine’s capital
The EBRD is supporting the development of logistics infrastructure around Kiev by providing a $34.4 million loan to Terminal Brovary LLC. This special purpose company is fully owned by AISI Realty Public Limited, a London Stock Exchange listed and Cyprus registered property fund, which is focusing on the real estate development in Ukraine. Part of the loan (up to $17.20 million) may be syndicated to commercial banks.
With the help of this loan, Terminal Brovary will develop, construct and put into operation a 49,200 square metres class “A” logistics centre located in the town of Brovary approximately 30 kilometres from the city of Kiev. Through the development of a large modern logistics centre, the project will address the severe shortage of adequate warehouse space in Kiev region and in the Ukrainian property market as a whole.
The city and region of Kiev have the potential to become an international logistics hub due to their excellent location at the crossroads between Europe and Asia. On a per-capita basis, Kiev has only one-sixth of the international quality warehouse space of Prague and about a quarter of that available in Budapest. In 2007 the demand for warehouse space in the Kiev area was four times greater than the supply.
The Terminal Brovary project will facilitate greater competition in the sector by introducing a logistics centre of a high international standard to the Kiev market. Its modern format will bring an improvement in efficiency for the logistics sector generally, increasing the speed at which Ukraine develops a modern logistics and retail infrastructure. In addition, by delivering a significant amount of high quality logistics space to the market, the project will contribute towards achieving more competitive rental terms for potential new tenants.
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of 1 January 2009, it had committed €4.1 billion through 170 projects.
|
