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EBRD financing boosts northern Poland’s property sector
In its first direct financing in Poland’s property sector outside Warsaw, the European Bank for Reconstruction and Development (EBRD) is supporting commercial and residential property development in the Tri-City area (Gdansk, Gdynia and Sopot) in northern Poland. A EUR 9.4 million convertible loan extended to Alpha Properties Group Ltd (Alpha) will finance part of a programme of commercial property developments, primarily in the retail, office and residential sectors of the market.
"The project is expected to boost the relatively underdeveloped property sector in the Tri-City area and to improve the quality of commercial property," said Edgar Rosenmayr, the EBRD’s Director for Property, Tourism and Shipping. "This is an important project for the EBRD because it focuses on a key region of Poland. It is also the first time that the Bank has invested directly in the development of residential projects."
Peter Gram, one of Alpha’s Directors, said: "The EBRD’s financing will allow us to proceed more rapidly with our projects in the Tri-City area. We look forward to cooperating closely with the EBRD."
The financing will enable Alpha to develop and operate a portfolio of properties in the Tri-City area, providing modern retail, office and residential space as well as industrial and hotel facilities. It will also encourage further foreign investment, both directly in the property sector and indirectly through foreign businesses that will operate in Alpha’s commercial properties.
With 1million inhabitants, the Tri-City region is one of the largest urban population centres in Poland outside of Warsaw. Due to its strategic location on the Baltic Sea, it is also one of the most prosperous regions in Poland, with good infrastructure and a well-qualified workforce.
Founded in 1997, Alpha is controlled by Polish and Norwegian investors who have identified the Tri-City area as an important centre for future growth. In this region, Alpha has already developed the first and only Class A office building* in Gdynia, the 13,000 sq m "Alfa Plaza", which was completed in January 2000. Alpha has also acquired a comprehensive land portfolio for future development.
* Class A office buildings are high quality buildings that meet full modern specifications regarding air conditioning, security systems, raised flooring, data cabling, etc.
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