Amtel Properties (f. Amtel Equity Investment)

Location:

Project number:

44662

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

16 Oct 2013

Status:

Signed

PSD disclosed:

11 Sep 2013

Project Description

The EBRD is considering investing up to USD 50 million of equity for a significant minority stake in Amtel Properties Development Ltd (“Amtel”, the “Company”).

The project will largely support real estate developments in Early Transition Countries such as Belarus and Georgia, as well as in Russia and Ukraine. The primary sub-projects include (i) a 3-star, 120 room Hampton Hilton hotel and a class B+ office with total GLA of 4,250m² both located in the central part of Minsk, Belarus, (ii) a class B cold storage logistic centre near Tbilisi airport, Georgia, with total GLA of 16,000m² of cold storage warehouse space and 25,200m² of container yard.

Transition Impact

The project will address the limited supply of quality logistic centres in Georgia and of internationally branded 3-star hotels in Belarus. The project will also contribute to setting sustainability standards in the property markets of Georgia and Belarus, which are expected to be above the standards currently observed in these markets.


The investment in the logistic centre in Georgia will support market expansion in the warehouse segment of the property market in Georgia, in which a large supply gap of modern cold storage facilities exists. The development will also lead to facilitating the supply of locally produced agricultural products from the regions to the capital city.

The 3-star hotel development in Minsk will promote greater competition in the hospitality sector in Belarus, which remains under-supplied with internationally branded quality mid-market hotels. The development will encourage locally managed competitors to improve their facilities through renovation and employ more professional property managers and hotel operators in the region. Furthermore, the project is expected to achieve an overall energy performance, compliant with the best international industry benchmarks and at least 20% beyond the current common market practice in Belarus as well as installation of the best available techniques.

The Client

Amtel Properties Development Ltd, a diversified regional real estate developer focussing primarily on construction and operation of commercial and residential real estate assets across Russia, Ukraine, Georgia and Belarus, including hotels, warehouses, offices and housing.

EBRD Finance

An equity investment of up to USD 50 million in Amtel Properties Development Ltd.

Project Cost

Approximately USD 507 million to be financed by USD 170 million of Amtel equity, USD 287.5 million of debt, and USD 50 million of EBRD equity.

Environmental Impact

Screening Categories: The project was categorized “B” by European Bank for Reconstruction and Development (EBRD), 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.

The Project has some site specific environmental and social impacts which can be readily addressed by adequate mitigation measures.

Environmental and Social Issues: The completed Environmental and Social Questionnaire and technical due diligence reports on the existing two sub-projects in Minsk and Tbilisi as well as the descriptions of potential additional sub-projects have been reviewed. Due diligence indicated that the client's environmental and social risk management capacities are adequate. Third party environmental and social audits will be required if any additional potential sub-projects are to be included as new sub-projects. The client is required to comply with EBRD Environmental and Social Procedures for Multiple Property Developments as well as to ensure that each sub-project complies with EBRD Performance Requirements.

Environmental and Social Monitoring: EBRD will monitor the Project’s environmental and social performance by reviewing an annual environmental and social report as well as site visits if deemed necessary.

Technical Cooperation

Ove Arup & Partners International Ltd, UK has been contracted under the regional framework “Sustainable Energy Support for Built Environment Projects”, funded by the SSF for provision of TC support for energy performance assessment and identification of energy efficiency opportunities. Under this TC support, the Bank has engaged the energy efficiency consultant to perform energy performance assessment and identification of energy efficiency opportunities in sub-projects with the aim to introduce additional cost-effective opportunities leading to reduction of operational costs of the assets. Identification of opportunities is conducted by the Consultant in cooperation with the Client’s technical and design team. However any engineering, design, and commissioning works on implementation of opportunities identified are left on the Client to cover. In addition, the Bank’s funding will any energy and water efficiency opportunities identified within the TC.

Company Contact

Amtel Properties Development Ltd
Daniel Gupta, CEO
Email: daniel.gupta@amtel-properties.com

 

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

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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.