Aura Centre Surgut

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Translated version of this PSD: Russian The EBRD is considering providing a senior A/B loan facility of €63.8 million to JSC Rialren (the “Borrower”) for the development, construction and operation of a class-A retail and entertainment centre with a gross buildable area of 90,134 sqm and a gross leasable area of 63,137 sqm, located in Surgut, Russia. The Project will feature: The Project is expected to have a strong transition impact potential in the following key areas: (i) Setting standards of business conduct, mainly on energy efficiency, through demonstration effect to other retail centres in the wider region of Surgut, as well as other non-retail property developers in Surgut (as the site is surrounded by emerging residential and industrial areas). (ii) Market expansion, through: (a) forward linkages to the tenants as the increased competitive pressure between the new retailers entering the market and the existing ones is expected to lead to improved offer, better quality of services, and lower prices. (b) backward linkages to subcontractors which would have to improve the quality of their services to meet the expectations of an international developer and contractor. (iii) Competition. The retail market is currently underdeveloped. The completion of the Project will increase the competitive pressure on the existing shopping malls, improve terms for the tenants and should ultimately result in lower prices for the final consumers. JSC Rialren is a special purpose limited liability company incorporated in the Russia and 95%-owned by Desna Gayrimenkul Yatirim A.S., a limited liability company registered in Turkey whose final beneficiary is the Ilicak Family. The Sponsor is Rönesans Gayrimenkul Yatirim A.Ş., a limited liability company incorporated in Turkey and owned by the Ilicak Family. EUR 63.8 million committed senior A/B Loan. EUR 116 million. 1. Screening Categories: The project was categorised “B” by European Bank for Reconstruction and Development (EBRD), which means that an environmental and social analysis was required by the Bank, in accordance with the Environmental and Social Policy and Performance Requirements. The project has some environmental and social impacts which can be readily addressed through mitigation measures and an action plan. 2. Information Received: The client completed an Environmental, Energy Efficiency and Social Questionnaire, and this has been reviewed by environmental and social staff of EBRD. 3. Environmental and Social Issues: The company is an existing client of the Bank and has shown adequate environmental and social risk management capacities in relation to the preceding project. The same project management team which worked for the preceding project will be engaged for the Project. Due diligence showed that the site is suitable for the project and there are no significant environmental and social issues. Environmental infrastructure provisions such as water supply and waste water treatment will be in place for the project. The General Contractor for the project has the ISO-9001 certification on quality management system OHSAS 18001 certification on occupational health and safety system. 4. Environmental or Social Opportunities: An energy efficiency performance assessment study is currently being carried out and will identify some specific energy efficiency improvement opportunities. 5. Summary of Environmental and Social Action Plan (ESAP) An ESAP is currently being finalised to address construction worker health and safety issues, migrant worker legal protection/temporary accommodation, and environmental management during construction and operation, a grievance mechanism for construction workers and affected neighbours, respectively and life and fire safety issues. The Project qualifies as built environment project with substantial sustainable energy investments and has benefited from a Quick Assessment of Energy Performance under a framework funded by Norway. A consultant engaged by E2C2 Team has assessed the performance of the project and assisted in identification of the overall Sustainable Energy Investment.