Volga Industrial Park

complete

The EBRD is considering providing finance to OOO Kstovo Industrial Park 1 (“KIP 1”, the “Borrower”) for the development, construction and operation of two stand-alone phases of a class A industrial park with a total gross leasable area (“GLA”) of 64,714 sqm on a 11.5 hectare green-field site located in Kstovo in the Nizhniy Novgorod region. The financing will consist of a Senior Loan and a Subordinated Loan and will support the expansion of a successful developer and the introduction of international quality standards warehouse space in a regional market in Russia. The transaction will promote the following key areas for transition impact: OOO Kstovo Industrial Park 1 is a special purpose limited liability company incorporated in Russia and majority-owned by Amstar Global Property Fund I L.P. (the “Sponsor”). Griffin 2 Capital Business Limited is a minority shareholder in the Project. The Sponsor is a limited partnership managed by Amstar Global Partners, an affiliate of Amstar Group, an established US real estate investment and development firm. Senior Loan of up to EUR 30.2 million. Mezzanine Loan of EUR 4 million. EUR 54.5 million. Screening Category and Justification B/1 requiring an environmental assessment of the site and project. The project could involve some specific environmental issues which can be readily addressed which includes issues such as past liability, environmental impacts of the project, construction worker health and safety issues and environmental management of the logistic centre. Due Diligence Undertaken and Outcomes The construction work has been started with the official environmental approvals confirming that the site is suitable for the development. The environmental due diligence is currently underway reviewing the completed Environmental Questionnaire and relevant documentation as well as a site visit if necessary. Implementation requirements An Environmental Action Plan (EAP) will be developed based on the findings of the environmental due diligence. The project will be required to comply with national and EU environmental, health and safety standards and submit an Annual Environmental Report to the Bank. The Bank will monitor the project’s environmental performance during the life of the project through a review of the Annual Environmental Report as well as monitoring visit where necessary and adequate. None. Sergei Gutnik Senior Banker, EBRD, Property and Tourism Tel: +7 095 787 1111 Email: gutniks@ebrd.com