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(Alliance News) - Emerging markets-focused investment firm Argo Group Ltd noted Friday a EUR10.2 million loan made to ARE LP, which has an 85% shareholding in Argo Real Estate Opportunities Fund Ltd, one of Argo's funds.
Argo Real Estate's key asset is Riviera Shopping City, an 85,000 square metre retail park in Odessa, Ukraine.
The loan has an interest rate of 9% with a final maturity of July 2027, with the proceeds onward lent by ARE to Novi Bizes Poglyady LLC, the asset holding company which controls the Riviera Shopping City.
The loan will allow Novi to refinance the EUR18.7 million senior debt facility from the Bank of Cyprus, which supports the development.
Argo also noted that the European Bank of Reconstruction & Development will provide a EUR12 million loan, on top of a EUR40 million facility, which will go towards building a 25,000 square metre extension of the asset.
Argo itself said it will possibly benefit from a better recovery on the outstanding EUR8 million of unpaid fees due from Argo Real Estate.
The fees are currently carried at no value, but the recovery will be greatly enhanced by the EBRD refinancing.
Shares in Argo - which is based in London - were up 6.1% at 26.00 pence on Friday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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