Aura Centre Surgut

Location:

Russia

Project number:

42551

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

12 Jul 2011

Status:

Completed

PSD disclosed:

08 Jun 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a senior A/B loan facility of €63.8 million to JSC Rialren (the “Borrower”) for the development, construction and operation of a class-A retail and entertainment centre with a gross buildable area of 90,134 sqm and a gross leasable area of 63,137 sqm, located in Surgut, Russia.

The Project will feature:

  • a quality shopping mall on two overground levels including a hypermarket, electronics store, cinema, retail gallery with anchors and smaller tenants, and catering facilities;
  • overground parking facilities for 2,200 cars.

Transition Impact

The Project is expected to have a strong transition impact potential in the following key areas:

(i) Setting standards of business conduct, mainly on energy efficiency, through demonstration effect to other retail centres in the wider region of Surgut, as well as other non-retail property developers in Surgut (as the site is surrounded by emerging residential and industrial areas).

(ii) Market expansion, through:

(a) forward linkages to the tenants as the increased competitive pressure between the new retailers entering the market and the existing ones is expected to lead to improved offer, better quality of services, and lower prices.
(b) backward linkages to subcontractors which would have to improve the quality of their services to meet the expectations of an international developer and contractor.

(iii) Competition. The retail market is currently underdeveloped. The completion of the Project will increase the competitive pressure on the existing shopping malls, improve terms for the tenants and should ultimately result in lower prices for the final consumers.

The Client

JSC Rialren is a special purpose limited liability company incorporated in the Russia and 95%-owned by Desna Gayrimenkul Yatirim A.S., a limited liability company registered in Turkey whose final beneficiary is the Ilicak Family.

The Sponsor is Rönesans Gayrimenkul Yatirim A.Ş., a limited liability company incorporated in Turkey and owned by the Ilicak Family.

EBRD Finance

EUR 63.8 million committed senior A/B Loan.

Project Cost

EUR 116 million.

Environmental Impact

1. Screening Categories: The project was categorised “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 Environmental and Social Policy and Performance Requirements. The project has some environmental and social impacts which can be readily addressed through mitigation measures and an action plan.

2. Information Received: The client completed an Environmental, Energy Efficiency and Social Questionnaire, and this has been reviewed by environmental and social staff of EBRD.

3. Environmental and Social Issues:

The company is an existing client of the Bank and has shown adequate environmental and social risk management capacities in relation to the preceding project. The same project management team which worked for the preceding project will be engaged for the Project. Due diligence showed that the site is suitable for the project and there are no significant environmental and social issues. Environmental infrastructure provisions such as water supply and waste water treatment will be in place for the project. The General Contractor for the project has the ISO-9001 certification on quality management system OHSAS 18001 certification on occupational health and safety system.

4. Environmental or Social Opportunities:
An energy efficiency performance assessment study is currently being carried out and will identify some specific energy efficiency improvement opportunities.

5. Summary of Environmental and Social Action Plan (ESAP)
An ESAP is currently being finalised to address construction worker health and safety issues, migrant worker legal protection/temporary accommodation, and environmental management during construction and operation, a grievance mechanism for construction workers and affected neighbours, respectively and life and fire safety issues.

Technical Cooperation

The Project qualifies as built environment project with substantial sustainable energy investments and has benefited from a Quick Assessment of Energy Performance under a framework funded by Norway. A consultant engaged by E2C2 Team has assessed the performance of the project and assisted in identification of the overall Sustainable Energy Investment.

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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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.