Chisinau Shopping Mall

Location:

Moldova

Project number:

38224

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

17 Jun 2008

Status:

Complete

PSD disclosed:

05 Nov 2006

Project Description

The project involves financing of a retail and entertainment complex with a gross build up area of 72,000 sq m. and gross letting area of 26,369 sq m. located 2 km south from the centre of Chisinau.

The Chisinau Shopping Mall has been developed, constructed, and is owned and operated by Lemi Invest SA, which is co-owned by S-L Real Estate Development BV and Colonnafin (jointly the ‘Sponsors’). The shopping mall is leased to reputable international and local tenants, many of which are already tenants in one of the Sponsor’s Bucharest shopping malls, which is developed and operated by Anchor Group SA.

Transition Impact

The project transition impact will derive from the following key areas:

  • The project has a significant demonstration effect by introducing new standards in the retail and entertainment sectors, as the shopping mall will be the first large scale retail development of Western quality standard in Moldova.
  • The project is likely to increase the competition in the retail market by increasing the quality of services to consumers, and changing the market structure by offering a wide variety of goods and services through a combination of local and international retailers.
  • The project is likely to transfer skills to local sub-contractors who will need to build a shopping and entertainment centre of international standards.

The Client

Lemi Invest SA, a special purpose company established under Moldovan law, which is equally co-owned by S-L Real Estate Development BV and Colonnafin BV. Both are Dutch companies. The latter is a Dutch Holding Company of which 100% is owned by Mr Husnu Ozyegin.

EBRD Finance

EBRD is considering providing a senior debt of €42.8 million, equally distributed over an A- and B-loan.

Project Cost

€56 million.

Environmental Impact

1. Screening category and justification

B/1. requiring a site audit and an environmental analysis. The project has some specific environmental issues which can be readily addressed.

2. Due diligence undertaken and outcomes

The environmental due diligence included the review of an Environmental Questionnaire for Property Project and communication to confirm that there were not any significant environmental issues to prevent the project to be further developed and that the site is suitable for the project purpose. A soil test was carried out on the site, and there are no soil contamination on the site; the geological survey did not identify any significant issues; the required zoning, planning and building permissions have been obtained. Waste water from the project will be discharged to the municipal sewerage systems and treated in the city’s waste water treatment plant; construction materials containing harmful substances such as asbestos and formaldehyde will not be used for the project; and some positive energy efficiency features such as automatic control of air-handling units, boilers, and cooling will be implemented. The Bank’s environmental staff visited the site in 2007 to confirm environmental and social mitigation measures were adequately in place and a further monitoring site visit was undertaken in 2011.

3. Implementation requirements

An Environmental Action Plan (EAP) was developed and agreed for the project in order to monitor the implementation of adequate mitigation measures during project construction and operation. The project will be required to comply with national and EU environmental, health and safety standards and requirements, implement an EAP and submit an Annual Environmental Report to the Bank. The Bank will monitor the project’s environmental performance during the life of the project through a review of the Annual Environmental Report as well as monitoring visits.

Technical Cooperation

None.

Company Contact

Mr Murat Kazaz
Anchor Grup S.A.
Anchor Plaza Office Building 12th Floor
26Z Timisoara Blvd.
Bucharest 6
061331, Romania

tel: +40 21 407 84 38
fax: +40 21 319 50 51

 

Business opportunities

For business opportunities or procurement, contact the client company.

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