Project summary document

Project description
and objectives:

The proposed project is an equity investment in Bluehouse Accession Property III (the “Fund”), an investment vehicle pursuing long term capital appreciation through equity or quasi-equity investments in entities which have limited liability established for the purpose of acquiring, developing, renovating, reconstructing, owning and managing real estate property in Romania, Bulgaria, Ukraine, Moldova, Serbia, Montenegro, Croatia, Bosnia and Herzegovina, Greece and Turkey (“the Target Region”), with aggregate capital commitments of up to EUR 300 million. The Bank’s participation will be exclusive of Greece and Turkey.

Transition impact:

The strategic input of the Bank is essential in various aspects:

• The key objective of the Bank’s involvement lies in the support of a real estate fund which will concentrate its activity on real estate markets in Bulgaria, Romania, Moldova, Bosnia, Serbia, Montenegro, Croatia and Ukraine focusing on development projects.
  
  
• As a significant portion of the capital will be used for forward financing and development of institutional grade real estate assets in secondary cities across the Region, this will improve and expand the local real estate markets and will promote competition.
  
  
• EBRD’s catalyst role will accelerate the development of these secondary markets, creating a much needed base volume of executed transactions, stimulating liquidity which in turn should strengthen developers/institutional equity investor’s confidence in exit opportunities, encouraging their (future) participation in these markets.

The client:

Bluehouse Accession Property III (the “Fund”), a special purpose vehicle organised under the laws of Luxembourg, to be managed by Bluehouse Capital Advisors S.à.r.l. (the “Management Company”). The Management Company also manages T2 Bluehouse Capital Partners I (“Fund I”) and Bluehouse Accession Property II (“Fund II”). Fund II closed as of end-December 2006.

EBRD finance:

The lower of 20% of the total capital contributions to the Fund allocated to the Region or EUR 48 million depending on the commitments of the other investors.

Total project cost:

EUR 300 million.

Environmental impact:

Screened FI. The Bank has existing exposure to the Client. Environmental due diligence carried out for the preceding project with the Client as well as the completed Environmental Questionnaire for the project confirm that the Fund Manager has capacities to implement the Bank's Environmental Procedures for Property Fund. For the upcoming operation, the Fund Manager is required to continue to implement the Bank's Environmental Procedures for Property Fund including submission of an Annual Environmental Report (AER) to the Bank. The Bank will monitor the Fund’s environmental performance through a review of the AER and site visit where necessary and appropriate.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Ms. Janet Woo
Principal Banker
EBRD
Tel. +44 20 7338 6720
Email: wooj@ebrd.com

EBRD contact:

Janet Woo, Operation Leader: wooj@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com