1 Oct 2013 14:21
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-Smith |
Note to Editors
Arricano (AIM: ARO) is one of the leading real estate developers in Ukraine and specialises in operating shopping centres. It is listed on the AIM Market of the London Stock Exchange. The Arricano group has a strong management team, which consists of local as well as international experts with long standing track records in real estate. The Arricano group owns and operates (or, in the case of Sky Mall, has an interest in) five shopping centres in Ukraine with approximately 160,000 sq. m GLA. The properties are located in the capital Kyiv (Sky Mall and M26/RayON), Kryvyi Rih (SEC Sun Gallery), Zaporizhzhia (SC City Mall) and Simferopol (SC South Gallery). The Company has recently acquired four development properties: Prospect/Krasnotkatska (Kyiv), Petrivka (Kyiv), Rozumovska (Odesa) and Lukianivka (Kyiv).