Akis REIT

Location:

Turkey

Project number:

49903

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

28 Mar 2018

Status:

Signed

PSD disclosed:

23 Apr 2018

Translated version of this PSD: Turkish

Project Description

EBRD participated in the accelerated book building ("ABB") of AKIS GYO Gayrimenkul Yatirim Ortakligi A.S. ("AKIS REIT" or "the Company"), a real estate investment trust part of Akkok Holding ("the Group"), Turkey. The Bank equity investment amounted to Turkish Lira equivalent of USD 25 million of the Company's secondary treasury shares.

The proceeds of the ABB will be used to help finance the Company's development pipeline and improve its balance sheet by reducing the outstanding loans. The proceeds of EBRD investment will finance the capex of Beykoz project, a residential development targeting LEED Silver or above energy efficiency certification (the "Project").

Project Objectives

The Project will support the growth of the Company by providing financing specifically to residential development project in Beykoz and reducing the bank debt leverage.

Transition Impact

The expected transition impact of the Project will stem from its contribution to the Inclusive and Green qualities, namely supporting the Company to (i) train up to 100 people whose skills will be certified formally through testing in a Vocational Testing Center and (ii) help the Company to achieve a minimum LEED Silver certification for the largest residential project from its development portfolio.

Client Information

AKIS GAYRIMENKUL YATIRIM ORTAKLIGI AS

AKIS REIT is one of the leading companies in Turkey in terms of quality of its real estate developments and asset management, high corporate governance principals and business ethics, ambitious targets in sustainability of its projects. The Company's current commercial portfolio includes two major shopping malls (Akasya Shopping Mall and Akbati Shopping Mall) with gross leasable area of 145k m2 , high street retail real estates and residential assets.

EBRD Finance Summary

USD 24,967,356.00

Total Project Cost

USD 59,967,356.00

Environmental and Social Summary

Categorized B (ESP 2014). The environmental and social issues associated with the equity investment in the real estate investment trust are site specific and can be addressed through standard mitigation measures. Environmental and social due diligence (ESDD) of the Company's operations, carried out by ESD, demonstrated that the Company operates its property investment and operation in compliance with relevant national law. At the group level, the Group is a member of the UN Global Compact (GC) and applies all ten UN GC principles for its activities. Again at the Group level, the Group has been providing satisfactory annual environmental and social reports for the preceding projects with the Bank. The Group's HR policy including an employee grievance mechanism, which is in line with PR2, is applied for the trust fund with 26 employees.

The ESDD was based on reviews of the completed corporate questionnaire and property specific questionnaire, documents and other information supplied by the client (Sustainability Reports 2013-2016 and Akis REIT portfolio presentation). The ESDD showed that the Company's activities are carried out in compliance with national legislation related to environmental permitting, and there were no significant environmental issues associated with their current operations. There were no biodiversity, cultural heritage and resettlement issues associated with the client. Two of the Company's existing retail properties, shopping centres Akasya and Akbati are BREEAM certified "Good" and "Excellent", respectively. The Company will commit to attain, at least, LEED "Silver" for the largest residential project in its development pipeline, Beykoz.

The Company asserted that national construction and fire safety regulations are applied during development of their assets. No incidents resulting from fire accidents were reported in the last three years. The Company uses third parties (contractors) for the provision of construction and maintenance services. The ESDD specifically on the investment trust (the Company), however, identified that it needs robust supply chain and contractor management related to labour practices for this project to satisfy EBRD PRs. An Environmental and Social Action Plan (ESAP) has
been developed for the project and will be agreed with the client to be incorporated into the legal agreement. The ESAP will address overarching E &S risk management, contractor management in relation to their construction and maintenance labour and OHS issues and environmental, labour and OHS legal compliance requirements in the bidding and contractor documents, life and fire safety in the client's properties, grievance mechanism and stakeholder engagement. The Company is required to ensure that all the operations under the investment trust comply with EBRD PRs. The Bank will monitor the project's environmental and social performance by reviewing the annual reports as well as monitoring visits.

Technical Cooperation

Technical Corporation might be provided under Inclusion Assistance Framework to support the Company to development of training programme & its materials and supervision of pilot implementation of the training programme.

Company Contact Information

I. Goksin Durusoy
goksin@akisgyo.com
+90 212 393 01 00
+90 212 393 01 02
www.akisgyo.com
Acibadem Mah. Çeçen sok. No:25 Akasya AVM 34660

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.