ORCO APARTHOTELS

Location:

Regional

Project number:

29124

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

29 Jan 2003

Status:

Completed

PSD disclosed:

28 Jan 2003

Project Description

The EBRD intends to provide equity financing to a new company, MaMaison Résidences SA, which will aim to develop aparthotel properties (extended-stay hotels) in the Bank’s countries of operation. The Bank’s funds would be used over the next 2-3 years to support the financing of the acquisition and pre-development costs of a pipeline of new aparthotels.The Project objective is to support the expansion of an aparthotel chain, building on the Client’s existing portfolio and development plans in Central and Eastern European markets.

Transition Impact

The aparthotel industry is the fastest growing hospitality sector in Western countries, building primarily on the increasing demand for extended stay accommodation at affordable prices from the business community. The Project will support the expansion of this new form of quality accommodation to the Bank’s Countries of Operation, focusing initially in the Central and Eastern European market and in the Baltic countries, replicating models that have proven successful in the West.Also, the Project will help demonstrate the benefits of introducing sound corporate governance standards in order to develop a business model tested successfully on a local market (in the present case, the city of Prague) to a regional market.By providing aparthotels in cities with scarce equivalent accommodation at present, the Project will also indirectly facilitate new business activities in these locations / new foreign investments into the Region. Lastly, the project will support the creation of new employment opportunities in the Region, both during the construction and the operation of new aparthotel properties.

The Client

The developer, ORCO Property Group SA, is a Luxembourg-domiciled Euronext-quoted company with a portfolio of property investments in Central and Eastern Europe.

EBRD Finance

Equity investment of up to €14.43 million in a new company set up to hold all of the client’s current and future aparthotel projects.

Project Cost

Up to € 142 million

Environmental Impact

The Project was screened B/0 requiring an Environmental Analysis. The refurbishment/development of aparthotel properties may involve some environmental, health and safety issues principally associated with previous use of the sites, soil and groundwater contamination and land subsidence, permitting procedures; potential impacts arising from construction (noise, dust, traffic disturbance, site waste management and worker health and safety); the environmental efficiency of the design of the buildings (energy efficiency, nature of construction materials, plans for solid waste and waste water) and environmental consideration during the operation (parking space and traffic issues). Environmental opportunities may arise from the environmental efficiency of the design of the buildings (energy efficiency, nature of construction materials etc) and potential brown-field rehabilitation. The Environmental Analysis confirmed that all aparthotel projects comply with, at minimum, national environmental, health and safety legal requirements of the country where they are located. The Sponsor will ensure the following for all new aparthotel properties:
a. All construction work and operation will be conducted in accordance with national and EU environmental, health and safety standards and requirements ;
b. All applicable environmental permits will be received or applied for from the relevant authorities in due course;
c. The Sponsor will ensure that contractors are provided with all necessary information to enable to manage the risks posed to health and safety during construction;
d. The development will comply with all local fire, safety and emergency procedures. Sprinklers will be installed throughout according to authorities' requirements. The latest developments in installation/safety techniques will be applied to the complex.
e. Energy conservation measures will form a part of the project along with the provision of clean air filtration systems.
f. No environmentally damaging materials or substances, (asbestos, formaldehyde, oil-cooled transformers etc.), will be used in the construction.

Technical Cooperation

None.

Company Contact

Cecile Chapuis, ORCO Group
Email: cchapuis@orcogroup.com
Website: http://www.orcogroup.com
 

Business opportunities

For business opportunities or procurement, contact the client company.

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