Translated version of this PSD: Greek
EUR 21.5 million equity contribution to a joint venture (the "JV") with Dimand S.A., a leading Greek real estate developer and construction services provider (the "Developer"). The JV will invest in sustainable commercial real estate and hospitality projects in Greece, with a focus on office, mixed use projects, student accommodation and city hotels.
The JV will mainly focus on brownfield redevelopment, deep refurbishment and regeneration projects in Athens and other major Greek cities across various property sectors, addressing Greece's needs for repositioning and deep-retrofit of the existing building stock in compliance with the country's climate commitments.
The JV will integrate sustainability, climate resilience and resource efficiency as a systematic and core element of its business strategy with the aim to control / optimise the sustainability performance of the acquired / developed assets.
The JV will be committed to complying with the highest sustainability standards with all assets to be developed being expected to achieve LEED "Silver"/"Gold" or above or BREEAM "Good" or above certification.
In addition, with the participation of EBRD and the collaboration with the Bank's Legal Transition Team (LTT) the JV will be introduced to a robust corporate governance regime. This would also present an opportunity for improvement in corporate governance practices at the level of Dimand S.A. The identified improvements will be implemented as defined in a corporate governance action plan (CGAP) developed in collaboration with the LTT and will be formally agreed as part of the project.
Dimand S.A., a real estate developer and construction services provider in Greece with over 10 years of experience and track record of delivering brownfield regeneration projects. Since its establishment, Dimand S.A. has developed projects with total value of ca. EUR 300 million including the first LEED Gold certified office building in Greece, Karela Office Park.
EBRD Finance Summary
As part of the proposed equity investment, EBRD will contribute equity of up to EUR 21.5 million for an up to 35% shareholding in the JV. Dimand S.A. will contribute an equivalent of up to EUR 40 million for a 65% equity interest in the JV.
Total Project Cost
Total equity contributions of up to EUR 61.5 million. The JV will raise debt financing at the sub-project level.
Environmental and Social Summary
Categorised B (2014 ESP) Environmental and social (E&S) issues associated with the redevelopment of the existing buildings in the urban settings can be readily identified and mitigated by adequate mitigation measures. Environmental and Social Due Diligence (ESDD) demonstrated that Dimand has adequate environmental and social risk management capacities and is in compliance with relevant Greek E&S legal requirements. A concise Environmental and Social Action Plan (ESAP) has been developed to ensure that all the subprojects comply with EBRD's Performance Requirements (PRs).
ESDD was based on the review of the completed corporate E&S questionnaire and specific E&S information on the two existing sub-projects as well as a site visit (November 2017). ESSD confirmed the following: the Developer's operations are in compliance with national legal E&S requirements; the land transactions are commercial, and there are no involuntary resettlement and economic displacement associated with the Developer's operations; there are two employees in Dimand who are responsible for coordinating and monitoring all the procedures to be in line with the ISO 14001 (Environmental) and OHSAS 18001 (Occupational Health and Safety) management systems; the construction work is monitored by the Dimand's on-site technical specialist; potential contractors are evaluated on their E&S legal compliance by a questionnaire; the Developer aims for LEED certification for new sub-projects; there is a LEED specialist at the company who oversights the
certification process; there is a contracted health and safety specialist to oversee all operations as well as a contracted health and safety specialist located at each project site; there are no significant E&S issues with the two advanced pipeline subprojects; and these two subprojects will have automated fire detection, alarm and sprinkler systems in place.
One of the subprojects is a re-generation of former industrial and warehouse facilities and office blocks next to Piraeus Port. The municipality has secured EU's EUR 17 million regional regeneration fund to regenerate the former industrial area next to the port. A new metro station connected to the airport is in close proximity to the subproject and will be opened next year.
The concise ESAP addresses the following: construction worker OHS issues; grievance mechanism for the employees and public; and life and fire safety of the buildings. The Developer will be required to ensure that all the subprojects comply with EBRD's PRs. The Bank will monitor the project's E&S performance by reviewing an annual environmental and social report as well as site visits if deemed necessary.
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