Project description
and objectives:
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To provide equity capital and act as anchor investor for the Emerging Balkan Residential Fund, a real estate investment vehicle with a target size of € 150 million equity. The Fund is pursuing medium-term capital appreciation through equity investments in affordable middle-class residential real estate in Albania, Bosnia-Herzegovina, Bulgaria, Croatia, FYR Macedonia, Moldova, Montenegro, Romania, Serbia, and Ukraine.
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Transition impact:
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The transition impact of the Project stems from the following factors:
- Market expansion in the housing sector: substantial stock of high-quality, affordable middle-class residential real estate will be brought to the market. The Project addresses the strong mismatch between supply and demand for this property class in the markets of the Region, which is reflected in inflated and further growing prices for this property class.
- Entering the least developed markets: The Fund will develop at least one project in FYR Macedonia, Moldova, Albania or Bosnia-Herzegovina – countries which to date have seen hardly any development of quality housing for the emerging middle-class.
- Greater competition: the Fund will also stimulate competition in markets currently dominated by a large number of small developers who tend not to have the capacity or intention to deliver high quality standards residential developments. In addition the Fund applies high standards of corporate governance and business conduct in its project entities responsible for project development and management which will be well perceived by the competitors and buyers.
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The client:
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Emerging Balkan Residential Fund, a special purpose limited liability company organised under the laws of Cyprus, to be managed by Secure Management Ltd. a Greek-owned management company.
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EBRD finance:
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EBRD will provide equity financing to the Fund in an amount equal to the lower of 20% of total capital contribution or EUR 30 million.
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Total project cost:
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EUR150 million
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Environmental impact:
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Screened FI. The environmental due diligence underway involves
(i) an assessment of the Fund Manager's existing environmental and social policies and procedures vis-à-vis the Bank's requirements and their capacity to implement them; and
(ii) an assessment of the environmental and social issues associated with the proposed sub-projects. The Fund will be required to implement the Bank's Environmental Procedures for Property Fund including adequate environmental due diligence and monitoring for each sub-project and submission of Annual Environmental Reports 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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Mr. Lambros Anagnostopoulos
Director
Secure Management Ltd.
Tel: +30 210 7226249
Fax: +30 210 7244095
E-mail: lga@secure-management.eu
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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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