Sberbank CIB, PGP Reach Preliminary Agreement on USD218 mn
OREANDA-NEWS. March 18, 2013. A preliminary agreement was reached which details plans for a line of credit of up to USD 2181 mln over ten years to be extended to Lidcom Investment Limited, a member of the PGP Group.
The company plans to direct the funds towards financing the construction of Zelenopark, a multi-functional shopping and entertainment center in the Zelenograd Administrative Okrug of Moscow. The announcement of the preliminary agreement was made at Sberbank’s stand at the MIPIM international real estate show which is running from March 12-15 in Cannes, France.
Daniel Reneau, a partner at PGP, commented, “This project required a credit product which was new for the Russian real estate market. I would like to thank Sberbank CIB for their willingness to provide support and create a unique structure for financing the deal, which will allow us to increase ROI for shareholders and accelerate our move towards a full construction cycle.”
Michel Pascalis, founder and partner of PGP added, “This is the first deal in which the Sberbank Group has financed one of our shopping malls. This is a strategic step for us, which I anticipate will become a long-term partnership. We currently have an excellent pipeline of projects in the Moscow region and I hope that we will collaborate with Sberbank CIB on them.”
Dmitry Kanushkin, Senior Banker at Sberbank CIB, said, “I am happy that we were a direct participant in one of the most promising deals in the Moscow region’s real estate market in recent time. I would like to mention that this deal is being prepared by the joint Sberbank CIB team, which includes the Real Estate Finance Department, Clients Managers Division of the Department of Corporate Clients, as well as Sberbank Merchant Banking2. We see that our integrated approach to financing, which takes into account the individual needs of the client, is in high demand in the market. As a result, we are continuing to develop this area of our business and are offering convenient, new financing solutions.”
Information for Editors:
PGP has been operating in the Russian market for more than ten years and is currently one of the leading investment-development companies in the warehouse and retail real estate industry. In 2012, the company launched its own program of developing shopping centers in suburban Moscow. In the next five years, PGP is planning on building 5-6 shopping centers in the Moscow Region worth over USD 1.5 bln.
1 Financing provided by Sberbank of Russia
2 A division of Sberbank CIB