The proposed project would finance the construction, letting and management of a two-phased mulitfunctional development in Bucharest. Phase One of the development will include underground parking for both phases, retail and office space, while Phase Two will include retail and office space. The project will be implemented by GTC International using local subcontractors and is expected to be completed in Q3 2005. Lettable area totals 27,080 square metres. The project will be located in central Bucharest adjacent to Victoriei Square. The Bank's funding will be in the form of a senior loan.
The transaction will promote the following key areas for transition impact within Romania:
Assist in alleviating the lack of Class A office space in Bucharest;
Contribute to the upgrading of technical and managerial skills in the real estate sector;
Support the local construction and building materials sectors and create backward linkages by utilising local suppliers and subcontractors in the construction sector and related industries;
Assist in addressing the shortage of accessible retail in the city centre and particularly in the north of the city.
The project will be carried out through a special purpose vehicle (SPV) srl, a Romanian legal entity, which is part of the GTC International group.
Senior loan of € 27.1 million consisting of an A loan for the Bank's own account totalling € 11.9 million and a B loan for the account of international commercial banks totalling € 15.2million.
To be confirmed.
The Project was screened B/1 requiring an Environmental Analysis and an Environmental Audit. Key issues addressed as part of the Bank's environmental due diligence included the adequacy of the borrower's environmental procedures for the development and operation of the office space, potential risks associated with the previous use of the site, soil and groundwater contamination, 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 and the site, as well as environmental considerations during the operation of the buildings (fire and other safety systems, waste disposal arrangements, parking space and traffic issues).
The environmental due diligence confirmed that there are unlikely to be any significant environmental issues associated with the project. The Sponsor has obtained the necessary permits and confirmed that all construction work and operation will be conducted in accordance with national and EU environmental, health and safety standards. The Sponsor will also comply with national and local public consultation requirements and will submit annual environmental reports to the Bank.
Towers International Properties SRL
For business opportunities or procurement, contact the client company.
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