Rns... Hmmm...1 Oct 2013 15:25
1 October 2013
Arricano Real Estate plc
("Arricano" or the "Company" or, together with its subsidiaries, the "Group")
New Loan Facility for Prospect/Krasnotkatska Development Property
Arricano (AIM:ARO), one of the leading real estate developers in Ukraine specialising in operating shopping centres, is pleased to announce that, today, LLC Komfort Market Luks, a subsidiary of Arricano, entered into a loan agreement with Oschadbank (The State Savings Bank of Ukraine) for a fixed term loan (the "Loan") in an amount of US$30 million for a term of 7 years with an interest rate of 11.5% (payable monthly), in respect of the Group's Prospect/Krasnotkatska development. The purpose of the Loan is to finalise the construction of the Prospect/Krasnotkatska development. The Loan will be secured principally by the real estate asset and the full amount of the loan has been guaranteed by Arricano Real Estate plc.
The Prospect/Krasnotkatska development property is being constructed on a site of about 5.79 ha and will consist of a two-storey retail and leisure complex with a total gross lettable area ("GLA") of approximately 30,400 sq. m. (including the gallery but excluding roof and surface parking as well as the hypermarket building referred to below). The construction works are in an advanced stage. The Group plans to open the centre by the end of the third quarter of 2014.
The project has a joint venture with an SPV of retail operator Auchan, Real Estate F.C.A.U LLC, to construct and operate its own hypermarket block within the project with an estimated GBA of approximately 11,700 sq. m. (excluding parking).
Commenting on the Loan, Emil Budilovsky, CEO, said:
"The management of Arricano is very pleased to have secured the financing for this very promising development in the Desnianskyi district of Kyiv. We are pleased to be partnering with Oschadbank which is one of the leading financial institutions in Ukraine."
For further information please contact:
Arricano Real Estate plc Tel: +380 44 569 6708
Emil Budilovsky, CEO
Nominated Adviser and Joint Broker:
Smith & Williamson Corporate Finance Limited Tel: +44 (0)20 7131 4000
Azhic Basirov / Siobhan Sergeant
Joint Broker
Whitman Howard Limited Tel: +44 (0)20 7087 4555
Ranald McGregor-Smi