Hystead Serbia



Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

04 Oct 2017



PSD disclosed:

04 Sep 2017

Project Description

The provision of senior loans of up to EUR 59.67 million to Balfin MK Dooel, Delta M CG and Preduzece Delta City 67 d.o.o. (the "Borrowers"), three limited liability companies incorporated in FYR Macedonia, Montenegro and Serbia respectively.  The Borrowers are fully owned by Hystead Limited, UK ("Hystead" or "Company") and own three retail and entertainment centres in their respective countries, namely Skopje City Mall, Delta City Podgorica and Delta City Belgrade. The loan is a part of a larger financing package to the Borrowers by EBRD and IFC.

Project Objectives

Repayment of existing loans of the Borrowers which will result in an improved and more sustainable capital structure and financing upgrades and/or expansion of the retail assets.

Transition Impact

ETI score: 61

The Transition Impact is expected to be achieved through the following sources:

Setting Standards: the Company will aim to certify the retail assets under an international sustainability scheme. The Company is an experienced operator of retail assets with an established commitment to sustainability, and may also contribute to transferring best practices in general (such as reporting and company-specific sustainability targets) to its new operations in SEE.

Skills Transfer: The Company will implement a training programme through its management team, building on its existing operations and training programmes in South Africa, and by setting up cooperation with local educational institutions to support their newly developing SEE operations.

Client Information


Hystead is owned by Hyprop Investments Limited ("Hyprop") (60%) and PDI Investment Holdings ("PDI") (40%). Hyprop is one of Africa's leading specialist shopping centre REITs listed on the Johannesburg Stock Exchange. PDI is a Mauritius-registered investment company, with majority owned by Louis Norval, an independent non-executive director of Hyprop. The shareholders set up Hystead in order to expand their portfolios into SEE, which is in line with Hyprop's strategy to acquire or develop high-quality, income producing retail centres in emerging markets.

EBRD Finance Summary

EUR 30,730,000.00

Total Project Cost

EUR 100,572,780.00

Environmental and Social Summary

Categorized B (2014 ESP). The implementation of the Project involving operation and expansion works of the existing retail centres will result in limited and localised environmental impacts, which can be mitigated or prevented by adhering to good international construction practice and standard environmental and social risk management. The environmental and social due diligence (ESDD) for the project included a review of the completed Environmental and Social Questionnaire and desk-top study on Hystead & Hyprop, including Hyprop's 2016 Integrated Annual Report and IFC's environmental and social review information on the project (IFC carried out a site visit for the project in 2017). 

The Bank's ESDD found that the client has adequate environmental and social risk management capacities to implement the project in accordance with the Bank's Performance Requirements (PRs). Hyprop, at the group level, is publicly committed to sustainability through the publication of its environmental performance in their integrated annual report, guided by the global reporting initiative and standards set by the FTSE4Good Emerging Index, of which Hyprop is a constituent. It aims at greater corporate transparency on environmental, social and governance considerations. Furthermore, the group is a member of the Green Building Council of South Africa ("GBCSA") and has committed to manage and operate its property buildings in an environmentally sustainable way. The group's sustainability commitment and environmental and social risk management policy and procedures are to be transferred to the Project's specific retail centres expansion and operation by assigned qualified management teams. The retail centres have environmental management systems in place to address waste, energy and water consumption. The client has also carried out required environmental and social due diligence for each asset under the Project prior to the acquisition. The client will also monitor each retail centre's performance including environmental and social one in due course.

While the general contractor of the expansion work at the retail centre in Podgorica (Montenegro) has not yet been selected, the client will require it to have an environmental, health and safety risk management for the construction work through the contract.

With regard to HR and Health-and-Safety policies, the retail centres under the Project have recently been integrated into the Hyprop portfolio and are still in the process of integration. The strategy is to ensure that their HR and Health-and-Safety policies and procedures are in line with Hyprop's group policies; thereby ensuring that equal opportunities, non-discrimination and health-and-safety management is addressed in due course. Third-party suppliers are contractually required to have staff properly trained and equipped by Personal Protection Equipment (PPE).

The retail centres under the Project are in environmental legal compliance and have implemented a variety of energy efficiency measures through the Project design and operational measures, through the use of Building Management System (BMS) including automatic control and optimization of the building's mechanical and electrical equipment work such as ventilation, lighting, power systems and managing of energy demand. In addition, the retail centre in Skopje has installed solar collectors of 36 solar panels for hot water supply. The retail centres' recycling effort is focused to separate collection of cardboard packaging, paper and plastic. These materials are collected and sold for recycling. Other general waste is removed by a contracted municipal company for further disposal at landfills. Hazardous waste is collected separately by a licensed company. Both EBRD and IFC are considering supporting the retail centres' energy and water use efficiency performance enhancement through technical assistance activities.

An Environmental and Social Action Plan (ESAP) has been developed to address adoption and implementation of the group-level sustainability policy at the Project and retail centre level, PR compliance at the expansion construction work, adoption of formal HR & Occupational Health-and-Safety policies at the retail centre level in line with the group's relevant policies in the area of equal opportunities and non-discrimination, career development and training, remuneration policy, an employee grievance mechanism and occupational health and safety. Furthermore, the ESAP includes Life and Fire Safety (L&FS) issues to undertake a risk-based review of the L&FS operational practices of the existing retail centres as well as to review Podgorica expansion's design and certify that the project complies with one internationally recognized L&FS codes such as U.S. NFPA as defined in EBRD PR 4 and the L&FS Section of the WBG General EHS Guidelines. Where gaps are identified, a life and fire safety corrective action plan will be developed and implemented in accordance with agreed timeline.

The Bank will monitor the Project's environmental and social performance including the status of the implementation of the ESAP by reviewing the annual environmental and social report as well as site visit if required and appropriate.

Technical Cooperation and Grant Financing

TC with consultant support is provided under existing and approved Green Economy Transition TC Frameworks applicable for corporate projects and clients in Western Balkans. The consultant will conduct sustainability pre-certification assessment and identification and assessment of cost-effective opportunities in all three assets considered for the Project. In addition, the consultant will conduct a training to the Company's technical and facility management staff on practices leading to more resource efficient operation and on the formal sustainability certification. 

Company Contact Information

Pieter Prinsloo
+27 11 447 0090

Implementation summary

The Project supported three Borrowers, ran by an international shopping mall operator, in attaining a more sustainable capital structure through refinancing of existing bridge loans that were used for acquisition of the three retail assets in Western Balkans with long term loans. The Project contributed to an overall increase in competition of the sector and improved shopping experiences through the modernisation and upgrading of all three shopping malls.  

The Project also ensured adherence to strict environmental, energy-efficiency and social standards as evidenced by the Borrowers having fully implemented their Environmental and Social Action Plans.  

The Project's transition impact was achieved through the setting of standards in the market through a combination of (1) certification of the three retail assets' compliance with BREEAM international sustainability standards; and (2) contribution to youth inclusion through the development of in-house training programmes as well as through the establishment of cooperation with local educational institutions in Montenegro, North Macedonia and Serbia and development of educational modules related to sustainable building management. 

PSD last updated

22 Jun 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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