The EBRD is considering providing financing for the development and operation of a modern inner-city shopping mall, located in Lviv, Ukraine.
The Project comprises urban regeneration of a brown field former industrial estate next to the historical city centre.
The Project is supporting the entry of a world-class developer – Multi Corporation B.V., present in over than 14 countries, developing, owning and operating property portfolio valued at over EUR 11.5 billion - to a regional city in Ukraine, fundamentally undersupplied and underdeveloped in terms of modern retail space.
Transition impact will most likely come from increasing competition and by addressing the under-supply of modern retail centres in the city/region, market expansion through forward linkages to retailers. The Project will use improved standards of business to mitigate any potential negative impact this new development may have in the local environment.
The Project will comply with the high best international practice standards in the retail industry and will use the Best Available Techniques and a strong sustainability concept, which will lead to significant resource and energy efficiency. Once implemented, the overall energy performance of the Project will exceed the reference energy baseline defined by the new Ukrainian regulation requirements by 29 per cent.
The Project Sponsor, Multi Corporation B.V., is committed to high sustainability standards and will showcase a “green project”, to become the first BREEAM (Europe’s foremost environmental performance rating body) certified project in Ukraine
Multi Veste Ukraine 3 ZAT LLC, a special purpose company incorporated under the laws of Ukraine, controlled by Multi Corporation B.V. - a private limited liability company incorporated in the Netherlands, the leading commercial developer of inner-city retail space in Europe.
A senior loan of EUR 46.1 million part of which will be syndicated to commercial banks.
A subordinated loan of EUR 6.0 million.
Approx. EUR 90 million.
Screening categories and rationale for classification
The project was categorised “B” which means that an environmental and social analysis was required by the Bank, in accordance with the 2008 Environmental and Social Policy and Performance Requirements (PRs).
The project has some elements of environmental and social impact which can be readily addressed through mitigation measures and an action plan.
The client has provided completed EBRD Environmental, Energy Efficiency and Social Questionnaire for Property Project, soil test results and archeological survey. The Bank’s consultants have carried out technical due diligence as well as an energy efficiency performance analysis. In addition, EBRD environmental staff has carried out environmental and social due diligence visit to the site in 2012.
Environmental and Social Issues and Environmental and Social Action Plan
The Sponsor is publicly committed to sustainable policy which is applicable for the Project. The project is a brown site urban re-generation project.
Due diligence has confirmed as follows: the project's commercial development was approved as part of town planning in 2002; approvals of conceptual design and town-planning justification were made in 2008; the final positive conclusion has been provided for the project as part of the local EIA process from Regional Sanitary Service; and the project has been developed to date in accordance with national/local law and good international practice.
An Environmental and Social Action (ESAP) has been developed and addresses (i) soil remediation at the site, (ii) construction worker occupational health and safety issues, (iii) potential impact on the neighbouring buildings and remediation actions, (iv) traffic management, (v) adherence to local requirements to preserve the historical down town, (vi) life and fire safety and (vii) a grievance mechanism for the workers and neighbours, respectively.
The project is required to comply with EBRD’s Performance Requirements (PRs). EBRD will monitor the project’s environmental and social performance by reviewing an annual environmental and social report as well as lender supervisor report and site visit if deemed necessary.
Multi Development Ukraine LLC
Address: 19-21 B.Khmelnytskogo Str, 01030 Kyiv Ukraine Tel.: +38 044 220 06 70
Fax: +38 044 220 06 80
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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