BELGRADE (Serbia), February 27 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have said they are extending a 164 million euro ($202.3 million) financing to investment firm Hystead, in order to encourage the growth of the retail sector in Serbia, Montenegro and Macedonia.
The financial package includes a 60 million euro loan from the EBRD and a 104 million euro loan from IFC to refinance an existing loan, improve the capital structure of Hystead and support the expansion and upgrade of the three shopping centres it operates, the two financial institutions said in a joint statement on Monday.
Upgrades will focus on adopting international environmental and social standards, implementing green building practices, efficient use of energy, rational water and resource management, waste minimisation and recycling, as well as the use of high-performing equipment and technologies. These improvements will enable the company to certify the retail centres under an international sustainability scheme.
The retail centres in Skopje and Podgorica will be the first ones in their respective countries to receive such certification. Their example will pave the way to more sustainable building management in the region, the EBRD and IFC said.
Hystead is planning to partner with local educational institutions in the three countries to develop curricula on sustainable building management. Furthermore, IFC and EBRD loans will help Hystead develop as a platform to attract future funding for retail property growth in the Eastern Europe region.
"We are pleased to partner with the EBRD and IFC and their loan is a testament to the quality of Hystead's portfolio and asset management expertise. We strive to create value for stakeholders while balancing our impact on the environment and the communities in which we operate; this is evident through our planned commitment to sustainable building management and youth development programmes," the CEO of Hystead, Alex Papageorgiou, said in the statement.
Hystead is a London-based company and an important investor in the Western Balkans. It owns Delta City shopping malls in Belgrade and Podgorica as well as Skopje City Mall. The company was established by Hyprop Investments Limited, a South African real estate investment trust (REIT) with a strong track record of operating shopping malls together with its joint venture partner PDI, a company associated with Louis Norval, a non-executive director of Hyprop Investments Limited.
($ = 0.810707 euro)