Secure Prop Regulatory News (SPDI)

26 Aug 2008 15:09



 26 August 2008

Aisi Realty Public Limited

("Aisi" or "the Company")

Aisi applies for EBRD funding for Brovary Logistics Centre 

Aisi, a property investment company focusing on development projects and related investments in Ukraine, is pleased to announce that its 100% owned subsidiary Terminal Brovary LLC has passed Concept Review by the European Bank for Reconstruction and Development (EBRD) for approximately $37.3m of project finance for Brovary Logistics Centre, the Company's first commercial development located approximately 27 kilometres from Kiev.

This follows the signing in July 2008 of a 10-year pre-let agreement with UVK, a leading Ukrainian logistics operator, for the entire development comprising approximately 49,200 sq. m of warehousing space at rental values that are in line with market rates.

The EBRD financing will comprise a $37.3m senior loan of which at least $18.65m will be syndicated to participant institutions. The funds will be used for the construction, ownership and operation of the development, one of the first Class 'A' logistics warehouses to be built in Ukraine to meet strong growth in demand. The EBRD board will meet by the end of September 2008 to consider the final approval of the project. 

The loan application is based upon a project cost of $53m, prior to any tax rebates. The project costs are higher than originally anticipated primarily due to the increase in gross leaseable area, construction input increases and additional utility connections. The development is due for completion by October 2008 with tenant fit-out works to be completed soon after.

Beso Sikharulidze, a director of Aisi, said: "We are moving rapidly to make Brovary Logistics Centre a commercial reality. Following the pre-letting of the development last month we are now in the final stages of obtaining project finance from the EBRD, which has a strong track record of supporting high quality business projects that are vital for economic development. Our application has already passed an environmental impact analysis and we look forward to completing the review process satisfactorily in due course."

Enquiries