Project description
and objectives:
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The proposed project consists in a senior A/B loan facility to be extended to
Special Purpose Companies (“SPC”) 100% owned by Globe Trade Centre S.A. Poland
(“GTC”) and Aura Investment Ltd. (“Aura”) (jointly “the Sponsors”). The SPCs
will be established to acquire, develop and manage commercial centres in
Romanian cities where population exceeds 100,000 inhabitants.
The facility will support the expansion of the Sponsors to regional cities in
Romania and diversification into the retail segment.
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Transition impact:
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The main rationale of the project is to directly promote competition in the
property sector by supporting strategic investors to expand into regional
cities in the Romanian market and indirectly, by attracting quality foreign
tenants to the local market, in addition to introducing international
standards of retail development.
The project represents one of the very few international quality chains of
regional retail centres in Romania. Additionally, the Bank will support this
commercially effective structure, to create a replicable practice in the
financial markets. One of the expected results of the project will be the
encouragement it should provide for commercial banks to finance similar
structures in the future.
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The client:
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GTC has been active as a developer in the Central Eastern European real estate
markets since 1994, operating in 9 countries, including Poland, Czech
Republic, Hungary, Romania and Serbia and Montenegro. GTC has positioned
itself as one of the leading developers in CEE with over 1,500,000 sqm of
office, retail and residential space under different stages of development. It
is listed on the Warsaw Stock Exchange since May 2004 and is also a member of
various prestigious equity indexes, such as the WIG 20, MSCI, GPR 250 and CAIB
REX.
Aura was established in November 1992 and is listed on the Tel Aviv Stock
Exchange. Until September 2005, Aura acted primarily as a holding and
management company.. Since end of 2005 Aura is involved in real estate
development , alongside experienced investors, both in Israel and other
countries.
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EBRD finance:
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Senior A/B Loan in total amount of EUR 80 million.
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Total project cost:
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To be confirmed.
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Environmental impact:
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Screening category and justification
B/1. The Project has some environmental impacts which can be readily
identified and addressed by adequate mitigation measures.
Due diligence undertaken and outcomes
The Sponsor is an existing client, and their environmental reporting on the
preceding GTC Belgrade project has been satisfactory to date. The soil and
ground water contamination examinations for the three specific sub-project
sites of the Project were carried out, and that the sites are not
contaminated. The Project has been prepared in accordance with good
international practice to date.
Implementation requirements
The Sponsor will be required to implement the Bank’s Environmental Procedures
for Multi-Property Developments by carrying out adequate environmental due
diligence and monitoring for each sub-project as well as to ensure that each
sub-project complies with national and EU environmental, health and safety
standards and requirements as well as to submit 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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Hagai Harel, GTC S.A.
Tel: + 48 22 60 60 770
Email: hagai.harel@gtc.com.pl
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EBRD contact:
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Michele Small, Operation Leader: smallm@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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