Project summary document

Project description
and objectives:

The EBRD is considering extending a senior A/B loan for a total amount of EUR 54.6 million. to a Special Purpose Company (“SPC”) 75% owned by Globe Trade Centre S.A. Poland (“GTC” or the “Sponsor”) via its wholly-owned subsidiary GTC Real Estate Investments Bulgaria B.V. and 25% owned by Naslada AD and SGS-Consult EOOD (the “Minority Partners”). The SPCs will be established to acquire, develop and manage a commercial retail centre in Stara Zagora, Bulgaria.

The facility will support the expansion of the Sponsor to regional cities in Bulgaria and diversification into the retail segment.

Transition impact:

The proposed project will help meet a strong demand for retail facilities of international standards in Bulgarian regional cities and attract quality tenants to the local market. Furthermore, the project will introduce improved business standards in the areas of real estate management by GTC, as well as in the areas of sales, marketing and management by international retail brands.

Finally, by being the first investment grade shopping mall in the region, the project will have a strong demonstration effect. The Bank will support this commercially effective structure to create a replicable practice in the financial markets.

The client:

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.

EBRD finance:

Senior A/B Loan in total amount of EUR 54.6 million.

Total project cost:

To be confirmed.

Environmental impact:

Screened B/1. The Project requires a site audit and an environmental analysis. The project could involve some specific environmental issues which can be readily addressed.

The Sponsor is the Bank’s existing client. The environmental due diligence including the review of the completed Environmental Questionnaire for Property Project to date confirms that there are not any significant environmental issues to prevent the project to be further developed and the site is suitable for the project purpose: the soil test was carried out on the site, and there are no soil contamination on the site; the geological survey did not identify any significant issues; the environmental study was carried out in accordance with the national requirements which confirms that there are not any significant environmental issues; a new municipal waste water treatment plant in Stara Zagora which treats the waste water from the project is currently being built with the Bank’s finance; construction materials containing harmful substances such as asbestos and formaldehyde will not be used for the project; design solutions for disabled access such as designated parking space, lowered sidewalks, lifts, disabled toilets will be implemented; and fire protection provisions such as fire detection and automated fire alarm, and sprinkler will be installed. A site visit by the Bank’s environmental staff is underway to confirm environmental and social mitigation measures are adequately in place.

An Environmental Action Plan (EAP) should be developed and agreed for the project in order to ensure the implementation of adequate mitigation measures. The project will be required to comply with national and EU environmental, health and safety standards and requirements, implement an EAP and submit an Annual Environmental Report to the Bank. The Bank will monitor the project’s environmental performance during the life of the project through a review of the Annual Environmental Report as well as monitoring visit where necessary and adequate.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Hagai Harel, GTC S.A.
Tel: + 48 22 60 60 770
Email: hagai.harel@gtc.com.pl

EBRD contact:

Michele Small, Operation Leader: smallm@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com