GTC Avenue Mall, Osijek

Location:

Croatia

Project number:

40618

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

17 Nov 2009

Status:

Completed

PSD disclosed:

12 Oct 2009

Project Description

The EBRD is considering providing a financing package worth up to €41.1 million to GTC nekretnine istok d.o.o to finance the construction of a shopping centre in Osijek, Croatia and support Company’s regional expansion in Croatia. The proposed package consists of:

(i) a senior A/B loan facility of €34.4 million to GTC nekretnine istok d.o.o, a Croatian special purpose company, majority owned by Globe Trade Centre S.A. Poland (“GTC” or the “Sponsor”) via its wholly owned subsidiary GTC Real Estate Investments Croatia B.V., and

(ii) an equity investment in GTC nekretnine istok d.o.o (the “Company”), a company organised in Croatia.

The Company will acquire, develop and manage a commercial retail centre in Osijek, Croatia. The facility will support the expansion of the Sponsor to regional cities 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 attract quality tenants to the local market. Furthermore, the project will introduce improved business standards in the areas of real estate management by GTC, as well as in the areas of sales, marketing and management by international retail brands.

The Project encompasses use of Best Available Techniques on energy efficiency, which penetration rate in the region is much below the rate in developed countries. The overall energy performance of the Project is 31.6% better than the requirements from the Croatian standards and by some 60% better than the reference building stock.

The Client as one of founders of the Green Building Council Croatia (GBC Croatia) has introduced internal corporate energy efficiency and environmental guidelines to be followed.

Energy & Resource Efficiency has been introduced as an evaluation parameter during tendering of all the project components.

All this ensures that, by being the first investment grade shopping mall in the region, the project will have a strong demonstration effect. The Bank will support this commercially effective structure to create a replicable practice in the financial markets.

The Client

GTC has been active as a developer in the Central Eastern European real estate markets since 1994, operating in 9 countries, including Poland, Czech Republic, Hungary, Romania and Serbia and Montenegro. GTC has positioned itself as one of the leading developers in CEE with over 1,500,000 sqm of office, retail and residential space under different stages of development. It is listed on the Warsaw Stock Exchange since May 2004 and is also a member of various prestigious equity indexes, such as the WIG 20, MSCI, GPR 250 and CAIB REX.

EBRD Finance

(i) Senior A/B Loan in total amount of €34.4 million, and

(ii) Equity investment of up to €5.7 million

Project Cost

To be confirmed.

Environmental Impact

Categorised B. The project could involve some specific environmental issues which can be readily addressed. The Project required an environmental and social analysis.

The Sponsor is the Bank’s existing client. The environmental due diligence including the review of the completed Environmental Questionnaire for Property Project and site visit confirmed that there are not any significant environmental issues to prevent the project to be further developed and the site is suitable for the project purpose: the soil test was carried out on the site, and there are no soil contamination on the site; the project has been developed in accordance with national requirements and good international practice; construction materials containing harmful substances such as asbestos and formaldehyde will not be used for the project; design solutions for disabled access will be implemented; and fire protection provisions such as fire detection and automated fire alarm, and sprinkler will be installed.

The Project is using environmentally friendly technologies such as cooling system with R-410A, refrigerant. The R410A is a hydrofluorocarbon (HFC) without any environmental restrictions for use. The refrigerant has no chlorine content, has no ozone depletion potential (ODP=0) and modest global warming potential GWP = 1,725.

Efficient energy saving technologies used will ensure low carbon and energy footprint. Total delivered energy use was assessed at 5,271.64 MWh, including 1,833.4 MWhth (heat&fuel) and 3,438.2 MWhel; (electricity) with delivered energy performance indicator 96.64 kWh/m2 (compared with the reference energy baseline of 141.20 kWh/m2 ). This results in final energy savings: 2,515.85 MWh including 1,384.9 MWhth /year and 1,130.9 MWhel/year. Total primary energy savings accounts for 4,916 MWh/year.

Carbon emission reductions as compared with the reference energy baseline are assessed at 792.7 ton CO2/year.

An Environmental Action Plan (EAP) is currently being developed in order to ensure the implementation of adequate mitigation measures. 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 visit where necessary and adequate.

Technical Cooperation

None.

Company Contact

Hagai Harel, GTC S.A.
Tel: + 48 22 60 60 770
Email: hagai.harel@gtc.com.pl

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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