Balfin Group

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The proposed investment is up to €40m corporate loan (the “IFC Loan”) to BALFIN Group (“BALFIN” or the “Company”, https://balfin.al/), one of the largest conglomerates in Albania with operations in the Western Balkans region, Austria, Switzerland, and the Netherlands. The IFC loan will help the Company (i) refinancing existing debt of the brownfield TEG shopping mall (“TEG”); (ii) extension, refurbishment and other related capex of TEG including a 1-2 MW rooftop solar park; and (iii) recapitalization of TEG and to finance its Retail Park projects in Korça, Vlore, Shkoder, Tirana and Elbasan (under the “West Park” concept) (“the Project”). The Company’s diverse investment portfolio can be categorized into real estate, retail, banking, tourism, wholesale and services (energy trading, logistics and education). Under the scope of this Project, the BALFIN group companies of relevance are:  BALFIN Group (Balkan Finance Investment Group) – Corporate group employing over 5,500 people and overseeing the group companies listed below.TEG (Tirana East Gate) – Built in 2011, Tirana’s first and largest shopping mall located in the southern-east part of Tirana, TEG has a current footprint of 22,000 m2. The expansion will increase the total footprint to 28,000 m2, and will involve additional retail space, food court, underground parking, a new warehouse, a playground for children, and a 1-2 MW rooftop solar park which was in a concept stage during the appraisal. As of June 2022, almost 95% of TEG extension construction activities were completed. Mechanical and electrical works will be undertaken which is expected to be completed by September 2022. Retail Park LTD –BALFIN-owned company developing the new ‘West Park’ strip-mall type, city retail park concept in Albania. Each Retail Park will have a longitudinal lay-out, consisting of four stores with separate entrances on the ground floor, and a floor above. There will be an open parking area and associated facilities including storage spaces/warehouse, loading areas and toilet facilities. Under the loan scope, up to seven retail parks will be constructed and located in Korça, Vlore, Shkoder, Tirana and Elbasan cities of Albania. The first one, Korça Retail Park, with 5,181 m2 land area, is currently under construction and for Vlore Retail Park, the Company is in the process of land acquisition, on a willing-buyer-willing-seller commercial basis. ACREM (Albanian Commercial Real Estate Management) – Provides management services (including design, procurement and the implementation process) for commercial real estate, including TEG and Retail Park LTD. ACREM will be responsible for operating all retail parks.Mane TCI – BALFIN’s Engineering, Procurement and Construction (EPC) Contractor company specialized in real estate development.  Mane TCI is responsible for completing project designs, procuring the necessary materials and equipment, preparing construction documents, and constructing BALFIN’s projects, including the TEG Extension and Retail Park LTD.