Arricano Prospect

Location:

Ukraine

Project number:

46819

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

10 Dec 2014

Status:

Complete

PSD disclosed:

23 Dec 2014

Translated version of this PSD: Ukrainian

Project description

The EBRD is considering providing a US$ 25 million long term debt financing for the completion and operation of a modern inner-city shopping mall, located in Kyiv, Ukraine. The project will be carried out by Arricano Real Estate plc, a real-estate company focused on the Ukrainian commercial real-estate market.

Transition impact

The proposed project is part of EBRD’s Ukrainian Corporate Support Programme.

Transition impact will come from increasing the competition and by addressing the under-supply of modern retail centres in a less developed district of the city, market expansion, higher efficiency, upstream and downstream linkages and general improvement of modern business standards.

The project will support demonstration of energy efficiency, which will comprise of advanced sustainable energy solutions, compliant with the best international practice: free-cooling, highly efficient rotor heat recovery, full automation of mechanical services, building-level metering equipment, motors with frequency converters, integrated building management system. These technologies have very low market penetration rates (in the range from 0 to 10 per cent) if compared to Western Europe markets. Sustainable energy investments account for US$ 4 million and will be financed from the Bank’s proceeds. The enhanced sustainability will impact the energy performance of the project. The energy consumption is estimated to be at least 35 per cent less than of an average shopping mall in the Kiev area.

The client

Comfort Market Luks LLC (the Borrower), a special purpose company incorporated in Ukraine to develop, construct, own and operate a mid-scale modern shopping and entertainment centre Prospect, ultimately owned by Arricano Real Estate plc. (the Sponsor), an existing client of the Bank listed on the Alternative Investment Market of the London Stock Exchange (AIM). The Sponsor is developing, owning and operating a retail property portfolio in Kyiv and across Ukraine.

EBRD finance

A senior loan of US$ 25 million

Total project cost

Approx. US$ 77 million

Environmental impact

Categorised B.

The E&S due diligence was carried out by means of questionnaire and a review of various documents including City Planning conditions/restrictions and the State Expertise report. Public consultation was carried out through local media prior to construction. In addition a review of the ongoing Environmental, Health and Safety (EHS) arrangements will be made following the opening to confirm fire and life safety controls, the mitigation measures related to the increased road traffic and general EHS control measures for the operational and maintenance phase of the project. An Environmental and Social Action Plan has been developed and finalised to ensure potential adverse operational and maintenance impacts of the project are managed and appropriately mitigated in accordance with relevant national, the EU and the EBRD requirements.

Technical cooperation

None.

Company contact

Oleg Pryimak

Finance Manager, Investor Relations, AIM Compliance

oleg.pryimak@arricano.com

tel. +38 (044) 569-67-08

 

 

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

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.

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