Project description
and objectives:
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The EBRD intends to provide a mezzanine finance facility to a Polish property developer. It would be used to finance new residential property development projects in greater Warsaw.
The Bank will assist Dom in financing the company's expansion and growth over the next couple of years. The fresh funds will enable the company to fully develop its current sites and new development projects which are in the pipeline.
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Transition impact:
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The project will increase the EBRD's focus on the residential property sector, working closely with a property developer in financing new residential developments. The project will help to increase the availability of residential real estate development, which is considerably lagging behind other property sub-sectors.
Financing for residential developments has to date been derived primarily from shareholder equity, buyer deposits and asset backed bridge facilities. Providing Dom with mezzanine finance would make a new financial product available to the constrained debt market currently available to developers.
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The client:
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Dom Development S.A. is Polish company that develops, markets and sells residential property in Poland. The Company is currently building and selling over 750 apartments and houses per year.
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EBRD finance:
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Up to €30 million in mezzanine finance; funding in two equal tranches.
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Total project cost:
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Around €100 million.
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Environmental impact:
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The Project was Screened B/0 requiring an Environmental Analysis of the proposed development. The development of residential properties may involve some environmental, health and safety issues principally associated with previous use of the sites, soil and groundwater contamination, land use planning, traffic impacts and health & safety. Environmental opportunities may arise from the environmental efficiency of the design of the buildings (energy efficiency, nature of construction materials etc) and potential brown-field rehabilitation. An environmental analysis of the operation is currently underway, based initially on the Bank's environmental due diligence questionnaire.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Jolanta Gabriel, Operation Leader: gabrielj@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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