City Centre One Split

Location:

Croatia

Project number:

40805

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

25 Nov 2009

Status:

Complete

PSD disclosed:

02 Nov 2009

Project Description

The EBRD is considering providing a €68 million long term debt facility for the construction of a modern third generation shopping mall in Split, Croatia, with a gross lettable area of 68,000 sq.m. and 2,600 parking lots. The project will be carried out by Kaufmann i Hofmann d.o.o., a special purpose company, majority owned by Prof. Wolfgang Kaufmann Beteiligungs GmbH, BFK Beteiligungs GmbH and Toprent Vermietungs GmbH, Austrian real estate developers. The project is planned to replicate the success of City Centre One in Zagreb, first project developed by the Sponsors in Croatia.

Transition Impact

The proposed project will contribute to fulfil the unmet demand for international standard retail facilities in regional cities of Croatia and to attract quality tenants to the local market. As the first institutional quality shopping mall in Split the project is expected to have positive demonstration effects and act as a catalyst for future developments by strategic investors not only in the Split area, but also in other regional cities in Croatia. Furthermore, the project will provide an example of working to institutional quality business standards in the area of construction management, as well as in the area of shopping centre management after completion of construction, capitalizing on the Sponsors’ experience in City Centre One in Zagreb.

The Project’s high development and operating standards will result in high energy efficiency, as well as further environmental and social benefits. Due to use of a package of Best Available Techniques, the overall energy performance of the Project is better by 60% than the reference energy baseline, defined by requirements of current Croatian regulations, adopted in June 2009. According to Croatian energy rating (following EU methodology) the Project qualifies for A+ energy efficiency rating.

The Client

Kaufmann i Hofmann d.o.o. (the Borrower) is a special purpose company incorporated under the laws of Croatia for the purposes of developing the Project and majority owned by by Prof. Wolfgang Kaufmann Beteiligungs GmbH, BFK Beteiligungs GmbH and Toprent Vermietungs GmbH, incorporated under the laws of Austria (the “Sponsors”).

The Sponsors have a strong experience in developing and operating several projects as architects and project managers/developers. Their flagship project is City Centre One in Zagreb – one of the leading and most successful shopping malls in Zagreb, which brought many retailers for the first time to Croatia and Western Balkans region.

EBRD Finance

€68 million long term debt facility under A/B structure.

Project Cost

€136 million.

Environmental Impact

Categorised B under EBRD’s 2008 Environmental and Social Policy. The environmental and social due diligence (ESDD) has been carried out based on review of the comprehensive ESDD questionnaire for property and retail developments and a site visit by the Bank’s environmental specialist.

The due diligence has confirmed that there are no significant E&S issues associated with the proposed development, and that it will be compliant with EBRD's Performance Requirements. The necessary permits, including a valid building permit, have been obtained from the competent authorities, and the construction is being carried out in full compliance with the Croatian national environmental and social regulations and the good international practice. The project will bring a number of E&S benefits in the area of promoting responsible environmental, health and safety and labour practices and standards during construction and operation, utilising advanced energy efficient technologies and alternative energy sources, promoting waste minimisation and recycling during construction and operation, improving access to local public transport routes, promoting international standards of access for disabled persons, supporting access for local retailers and suppliers, and supporting local socially responsible initiatives during operation of the Centre.

The Project is using environmentally friendly technologies such as photovoltaic installation (solar panels) integrated in building design, reversible heat pumps, free cooling, waste heat recovery of ventilation.

Efficient energy saving technologies used will ensure low carbon and energy footprint. Total delivered energy use taking into account solar and internal gains was assessed at 3,165 MWhel, with delivered energy performance indicator of 35.14 kWh/m2 (compared with the reference energy baseline of 87.97 kWh/m2) which means that Project’s energy performance is better than the reference energy baseline by 60%. This results in final expected energy savings of 4,758.5 MWhel. Total primary energy savings will account for 14,275.4 MWh/year. Carbon emission reductions as compared with the reference energy baseline are assessed at 1,822.5 ton CO2/year.

An Environmental and Social Action Plan (ESAP) is currently being developed in order to ensure that adequate mitigation measures are implemented during the project. The project will be required to comply with national and EU environmental, health and safety standards and requirements and implement an ESAP. The project will be monitored by means of annual environmental and social reporting to the Bank as well as monitoring visit where necessary and adequate.

Technical Cooperation

None.

Company Contact

Fabian Kaufmann, Director, Kaufmann i Hofmann d.o.o.
E-mail: office@citycenterone.com

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Project Complaint Mechanism (PCM)

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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.