Eurasia RED

completed

The project is to develop: (i) the 55,000 m2 phase I of a 100,000 m2 city shopping center featuring cultural as well as entertainment services on Raimbek Avenue in Almaty; and (ii) a 100,000 m2 city shopping center also offering cultural as well as entertainment services on Kulja Avenue in Almaty (the “Project”). The Project will be implemented in a phased manner, i.e. the shopping centers will be constructed one after the other. ERED currently owns and operate an existing class B+ business center on Manas-Satpayev, Street, Almaty. Pipeline projects include: (i) the phase II of the shopping center on Raimbek Avenue for 45,000 m2, (ii) a second class B+ business center on Abay-Saina Street, Almaty; (iii) a shopping center opposite the central market in Astana; and (iv) other property projects (possibly business centers) on three sites at the exit of Almaty towards Kapchagai.The proposed IFC investment consists of both equity and loans to support ERED in its commercial property development projects. These developments are to satisfy the demand for modern shopping center space in the commercial real estate market and bring in modern retail and entertainment operators to Almaty and at a much later stage to Astana and the regions of Kazakhstan. ERED’s current development plans include the following individual sites, which are all open land and which have all been acquired with clean titles:SAT-I business center: This 14,566 m2 business office center was completed in 2006 on Manas-Satpaev street in Almaty. The center has been highly successful with a 100% occupancy rate. The site measures 0.34 hectare and has 105 parking lots. Business center is located in one of Almaty business downtowns.Raimbek Avenue city shopping center: This 100,000 m2 mall, of which 55,000 m2 (phase I) will be opened in February 2009 is located on a 19.4 hectare site (11.4 ha for phase I) along the Raimbek Avenue transport corridor in the western part of Almaty. The site is located approximately 15 minutes from downtown Almaty on the road leading to Bishkek in Kyrgystan. The shopping center will have a total of 2,675 parking lots when fully developed. A phase II extension of this shopping center is planned with the acquisition of additional land of 8 hectares and the addition of approximately 45,000m2 of constructed space, to be approved by IFC based on conditions and milestones to be met.Kulja Avenue city shopping center: This 100,000 m2 shopping mall to be opened in late 2010 will be located on a 19-hectare site in the eastern part of Almaty along the road to China, approximately 15 minutes from downtown Almaty. The area around the center is rapidly developing with mainly residential areas. The shopping center will be located between the city center and the future new international airport along Almaty ring road.SAT-II business center: This 28,050 m2 business office center will be located on a 0.53 hectare site in the western part of Almaty on Abay-Saina Street in front of a new subway station, approximately 10 minutes from downtown Almaty. The surrounding area is partly residential, partly small business / industrial.Residential and shopping outlet center. ERED has acquired three sites of 21 hectares, 12.5 hectares, and 5 hectares respectively at the exit from Almaty towards Kapchagai, approximately 25 minutes from downtown Almaty. These areas are reserved for development as potential shopping outlet center and residential town houses, with a timing to be determined by the development of the city in this direction.Astana city shopping center: ERED has acquired an 11 hectare site in front of the new central market in Astana. This area is reserved for the development of a shopping center, with the timing to be determined by the development in the city, including construction of Astana new central market in this direction, as well as the level of the demand for retail in Astana.