Brno New Town Square

Project Description

Provision of a senior secured loan through EBRD participation of up to EUR 65mn alongside co-lenders in a multi-bank project finance club loan of up to an aggregate EUR 156mn, in favour of Brno New Town Square ("the Borrower").

Project Objectives

The purpose of the Loan is financing masterplan-driven sustainable urban-regeneration project consisting of a mixed-use development scheme including affordable residential component, green office,, food-anchored retail and affordable hotel with culture and lifestyle concept ("the Project"). The Project is in the historical city centre of Brno, a sought-after location that currently houses outdated retail premises owned by the Borrower, which will be redeveloped as part of the Project.

Transition Impact

ETI score: 66

ETI 66 Primary Quality - Green, as the Project will achieve LEED 'Platinum' for the building and through the implementation of Level(s), an advanced international environmental management standard. Secondary Quality - Inclusive, as the Project will provide access to decent employment opportunities for people with disabilities through increasing their share in the Client's workforce and introducing inclusive HR practices.

Client Information

BRNO NEW TOWN SQUARE SRO

Brno New Town Square s.r.o is a fully owned company incorporated in the Czech Republic. It was established by Crestyl Brno Properties LTD, a joint venture between Crestyl Holding CZ and ACP Partners. Founded in 2001, Crestyl Holding is a leading Czech developer with a diversified portfolio in mixed-use multipurpose residential, retail, and commercial properties. ACP Partners is a co-investment platform established in the UK for private investors looking to structure and participate in proprietary investment.

EBRD Finance Summary

EUR 65,000,000.00

Senior loan of up to EUR 65,000,000.

Total Project Cost

EUR 220,000,000.00

Total project cost is up to EUR 315,000,000 to be financed by a senior club loan of EUR 220,000,000.

Additionality

Additionality in this project stems from standard setting by supporting the Company to maintain/implement higher standards on gender equality.

Environmental and Social Summary

Categorized B (ESP 2019). The Environmental and Social Due Diligence (ESDD) has been undertaken initially and involved a review of the E&S Questionnaire, Borrower documentation, CapEx plans, and meetings with Borrower representatives. ESDD has confirmed that a local Environmental Impact Assessment is not required for construction and operation of the commercial development. The Company has a robust Environmental and Social Management System and sufficient capacity to implement the Project in line with the Bank's Performance Requirements. Contractors will be obliged to follow national environmental and social law which is aligned to appropriate EU Directives. The Company operates in line with Czech national labour law which is in line with core International Labour Organization conventions. The Company has a Code of Ethics, a Policy on non-discrimination and equal opportunities, and an employee grievance mechanism which includes a whistleblower mechanism. The Bank will monitor the Project's compliance with the Performance Requirements through submission of Annual Environmental and Social Reports and site visits, if necessary.

Technical Cooperation and Grant Financing

n/a

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.