Project description
and objectives:
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EBRD together with the Sponsor to invest up to EUR 300 million in equity to
create a regional portfolio of 15 to 20 property assets (‘Sub-Projects’) under
the name of E3. E3 will seek long-term capital gains by investing in
commercial real estate in Russia, Ukraine, Serbia, Montenegro,
Bosnia-Herzegovina, Macedonia and Bulgaria. The investments will be for the
purpose of developing, renovating, reconstructing, acquiring, owning/managing
commercial real estate.
The proposed project will promote the primary and secondary property markets
across the Region by:
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Targeting exclusively less developed property markets, placing at minimum 70%
of the E3 capital in Russia and the Ukraine as “Prime target market” and up to
30% in Bulgaria, Serbia & Montenegro, Bosnia-Herzegovina and Macedonia as
“Secondary target markets”.
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Allocating more than half of E3 to development-sub-projects.
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Transition impact:
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Promotion of less developed primary property markets to improve supply of
quality commercial space in these markets.
Support the development of a more liquid secondary property market on a
regional scale and primary markets in Ukraine and Russia and South-eastern
Europe. A mature secondary market should eventually lead to the acceptance of
local property as an asset class and the entrance of non-specialist investors
seeking to diversify portfolios and encourage primary investors to move
further east to the early and intermediate countries.
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The client:
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Investkredit Bank AG, an Austrian commercial bank specialised in medium and
long-term financing to corporate customers and public institutions.
Investkredit Bank AG is 100% owned by Österreichische Volksbanken-AG
(“OEVAG”), the central institution of Austrian credit cooperatives.
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EBRD finance:
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Commitment of EUR 52.5 million in equity and quasi-equity instruments to
participate with up to 35% in the First Closing of E3.
Option to invest up additional EUR 52.5m at Second Closing of E3.
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Total project cost:
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Up to EUR 300 million in equity and quasi-equity investments,
Capital for E3 investment programme will be raised in two stages:
First Closing: EUR 150 million in 2006
Second Closing: EUR 150 million in 2007/8.
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Environmental impact:
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The project was screened C/1.
Europolis has been successfully implementing the formal environmental due
diligence procedures based on EBRD’s Environmental Procedures for Property
Funds and agreed with the Bank under the Europolis 1 and 2 transactions. This
has involved
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reviewing the environmental issues of each sub-project including potential
soil and groundwater contamination of the site,
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managing construction-related environmental issues (noise, dust, traffic
disturbance) and worker health and safety issues, safety of construction
materials and life and fire safety issues of the building, and:
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submitting annual environmental reports to the Bank.
Under E3, the Investment Programme Manager will continue to implement the
environmental due diligence procedures in order to ensure that the E3 property
developments and investment are undertaken with full respect of environmental
issues including compliance, at minimum, with national environmental, health
and safety standards and requirements, national public consultation
requirements where the sub-project is located and implementation of good
international practice applied by Western property developers as well as
submission of an annual environmental report to the Bank.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Europolis Real Estate Asset Management GmbH (“Europolis”)
Kolingasse
12,
1090 Vienna,
Austria
Tel: +43 (1) 319 72 00
Fax: +43 (1) 319 72 00 - 10
Website: www.europolis.at
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EBRD contact:
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Thibault Dutreix, Operation Leader: dutreixt@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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