LONDON (Alliance News) - Arricano Real Estate PLC Tuesday said one of its subsidiaries has entered into a seven-year USD30 million loan agreement with the State Savings Bank of Ukraine.
Arricano said the interest rate on the fixed term loan will be 11.5%. It will be used to fund the final construction of the Krasnotkatska development and is secured mainly by the asset itself. The full amount of the loan was guaranteed by Arricano.
"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," Emil Budilovsky, chief executive, said in a statement.
The construction is at an advanced stage and Arricano said it expects to open the centre by the end of the third quarter of 2014. It will be made up of a two-storey retail and leisure complex that will have a 30,400 square metre area to be let out. Arricano has a deal with retail operator Auchan Real Estate F.C.A.U LLC to construct and operate its own hypermarket block within the project.
Arricano shares were Tuesday quoted at 2.55 pence, unchanged.
By Samuel Agini@alliancenews.com; @samuelagini
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