Griffin Student Depot Framework

Location:

Poland

Project number:

48191

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

20 Jul 2016

Status:

Complete

PSD disclosed:

02 Jun 2016

Translated version of this PSD: Polish

Project Description

A senior loan to a Polish holding company (to be set up), controlled by Oaktree Capital Group LLC ("Oaktree") to finance the acquisition, refurbishment and development or redevelopment of a portfolio of about 15 collections of student accomodation across Poland under the Student Depot brand (the "Project").

Project Objectives

The proceeds of the loan will be used for acquisitions of properties as well as selective developments, altogether about 15 existing buildings, located across Poland, which will be subsequently refurbished, developed or redeveloped, and converted into student housing (the "Sub- Projects").

Transition Impact

Transition impact is expected to arise from the demonstration of a new type of product, modern sustainable student accommodation, with a potential for replication throughout the region. The project may also provide an example of improved energy efficiency and sustainability standards in the sector, which is one of the Bank's strategic priorities in Poland.

Client Information

OAKTREE CAPITAL MANAGEMENT (UK)

The borrower will be a newly created holding company, incorporated in Poland and ultimately wholly owned by Oaktree Capital Group LLC ("Oaktree"). Oaktree is a successful developer and operator of student housing assets in the UK, Spain, France and Ireland.

Griffin Real Estate ("Griffin" or the "Company"), based in Warsaw, will be the developer and property manager of the student housing assets in Poland.

EBRD Finance Summary

PLN 101,900,000.00

Total Project Cost

PLN 617,500,000.00

Environmental and Social Summary

The Project has been categorised B in accordance with EBRD's 2014 Environmental & Social Policy. The overall environmental and social risks related to the acquisition, construction and operation of the private student houses are readily identifiable and can be mitigated through relevant environmental and social risk management.

The Environmental and Social due diligence (ESDD) was undertaken by the Bank. The ESDD included interviews with the Company management and site visits to the chosen locations from the portfolio of sites and buildings to be financed by the Bank. Additionally technical due diligence carried out by independent consultants reviewed key aspects related to planning, environmental and fire safety legal compliance of the sub-projects and potential environmental risks of the respective sites (e.g. land contamination, presence of asbestos and other harmful construction materials).

The information provided indicated that the Company operates in compliance with national nvironment, health and safety and labour legal requirements as well as has the adequate capacity to implement the project in line with Banks Performance Requirements (PRs). The Company, however, has not yet implemented a formalised management system or standardised approach for acquisition, construction and operation of the student houses. The Company does not report publically on its Environmental, Health and Safety and Social performance.

An Environmental and Social Action Plan ("ESAP"), therefore, has been developed to bring the project in compliance with the PRs through the implementation of corporate level actions as follows: appointment of an Environmental, Health & Safety and Social (EHSS) coordinator within the Company management team, development of EHSS policies and standards applicable for the acquisition, design, construction and operation of the student houses, contractor management and monitoring, development of public grievance procedure; and site specific requirements related to
energy performance assessments, fire safety, soil testing and a review for presence of asbestos and other harmful construction materials. A final ESAP will be agreed prior to the Board. The Bank will monitor the Project's environmental and social performance through a review of an annual report and site visits as required.

Technical Cooperation

The Project received TC support of EUR 74,910 for resource efficiency improvements and enhanced sustainability under the regional framework for built environment projects, funded by the Government of Japan.

Company Contact Information

Leszek Maciusowicz
LMaciusowicz@griffin-re.com
+48 22 21 21 940
http://studentdepot.pl/
Aleja Szucha 6, 00-582 Warszawa

Business opportunities

For business opportunities or procurement, contact the client company.

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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.