HB Reavis announced that it has successfully completed the process of financing the Forum Business Center I office project, being built in Bratislava's central business district. The total loan amount will reach 29 million. This comprises the construction loan covering investment costs up to 70%, with a further increase upon completion and a maturity of five years.
Several local and international banks were bidding in the tender for financing, whereof Slovenska sporitelna offered the most attractive conditions. Slovenska sporitelna enters into the cooperation with the developer as the sole financing bank involved in this project. Total project investment costs will amount to 37.5 million.
"We consider Slovenska sporitelna to be our traditional banking partner since we cooperated successfully also on financing the Aupark shopping center in Bratislava, as well as Apollo Business Center I and Aupark Tower office projects.
Though uncertainty in the Eurozone is also reflected in the way how banking institutions assess risk, we are pleased that thanks to our excellent loan history and strong equity position, we are able to secure loan financing also for projects of larger scope. Forum Business Center with a green building certificate knows its future anchor tenant already. Based on a long-term contract, the major part of the office space was leased to Slovak Telecom that will open its new headquarters here," stated Jiri Hrbacek, HB Reavis's Group CFO.
"For years there has been continuous partnership and trust between Slovenská sporitelna and HB Reavis.Only a few developers can find first-class tenants on the market in these difficult times, or deliver construction on time and keep promises to their partners. Our door is always open to such developers. Clients who were banking with us in the good times are also welcome to do so now when the situation is much more complicated", added Vladimír Krno, Director of Real Estate Financing and Project Finance of Slovenská sporitelna.
The construction of the first stage of Forum Business Center with a total leasable area of 18,700 m² commenced in November 2011. The building will be completed by the end of the second quarter next year. Layout, architectural concept and artistic design of the scheme are well-suited to the needs of the most demanding international tenants. The property is unique due to its location at the corner of an important road intersection, where it also creates an urban landmark.
The office building is conveniently accessible thanks to additional investments by the developer to improve the traffic infrastructure in the area. New turning lanes are to be added in three directions, which will significantly improve traffic throughput of this hub. Just as all other new projects of HB Reavis, Forum Business Center will have a green building certificate, awarded in accordance with the British system BREEAM Excellent (Building Research Establishment Environmental Assessment Method).
The HB Reavis Group has recorded an unprecedented growth. After the success of its Prague project - River Garden Office fully leased at opening, construction of the second phase is currently underway. In Budapest HB Reavis is building Vaci Corner Offices at the Vaci Street, and in the Polish capital Warsaw, which is one of the fastest growing real-estate markets in Europe HB Reavis is building two projects simultaneously: Konstruktorska Business Center and Gdanski Business Center.
During the last two years, the company acquired five land plots in Warsaw covering 9 hectares. A total of 330,000 m² of class-A leasable office area will be developed. The estimated value of these assets will exceed 1.1 billion after completion.
Source: HB Reavis