SRED Mihai Bravu

completed

Soravia Real Estate Development GmbH (SRED) is the recently formed, commercial real estate development arm of the Austria-based Soravia Group (the Group or the sponsor). SRED identifies, evaluates, builds and sells real estate projects in Austria, Slovakia, Estonia, the Russian Federation, Romania, Bulgaria, Serbia, Macedonia, Montenegro and Ukraine. In May 2008 IFC and SRED concluded an agreement under whose terms IFC conditionally agreed to support selected commercial real estate development projects in Southern and Eastern Europe. Mihai Bravu is the first such sub-project to be considered for IFC support under the terms of this agreement. The project is being developed by a SRED-controlled project company Banat SRL (“Banat” or “the Company.”)Mihai Bravu sub-project is a €112 million 15-floor office building that will include underground and outside parking lots. The office will also host a small retail area that will offer services to the tenants. The project is being developed on a plot of some 7,700 m2 : the gross area of the project is approx. 69.500 m² over ground and approx. 29.200 m² underground. Of this, there will be approximately 54.000 m² or rentable office space and. 4.000 m² of retail space. In addition there will be storage rooms and 670 parking spaces, which will mostly be underground. The Project is located in Sector 3 directly on the Blvd. Mihai Bravu which connects the northern part of the city with the south-eastern part. The Boulevard is a four-lane-street with tramway line in the middle. At the time of review, SRED had acquired the site and was commencing studies necessary to complete the project’s social and environmental assessment, and complete project design.