International law firm Salans has advised SibStroyInvest, a joint venture between Renaissance, one of the leading shopping mall development companies, and Amstar Global Partners, a private equity real estate fund active in emerging markets including Russia, on a 60 million debt financing consisting of a 40 million senior loan from the European Bank of Reconstruction and Development and UniCredit Bank Austria as 50% participant and 20m subordinate loan from the EBRD for the new Aura Shopping Centre in the city centre of Novosibirsk, Russia.
The financing is for the development, construction and operation of a Class-A retail and entertainment centre of almost 145,000 m², nearly 60,000 m² of that leasable area. The project, which includes a strong energy efficiency component, will feature a quality shopping mall on four levels anchored by a supermarket, DIY store, multiplex cinema and retail gallery, alongside other retailers and catering facilities. The complex will also include two underground levels of parking facilities for over 1,500 vehicles.
This project will introduce best practice techniques relating to energy efficiency in construction and design to this part of Russia for the first time. It is therefore anticipated that the project will be eagerly observed across the sector as a model for architects, designers, engineers and developers in the region, setting new benchmarks in construction and performance.
Jason Lucas, Senior Vice President of Amstar Global Advisors, stated "We are delighted to expand our banking relationships with the EBRD and UniCredit Bank Austria and look forward to completing construction of this landmark project." Lead counsel on the deal from Salans, Marcell Clark, commented, "The untapped potential of this part of Russia, the green credentials which set it apart from other projects, and of course the expertise of Renaissance and Amstar, were key to the financing of Aura Shopping Centre."
Salans' Real Estate Finance Group is a dedicated sector within the Global Real Estate Group, counting over 200 lawyers worldwide. The real estate finance team handle all aspects of financing for real estate projects including borrower and lender representation, loan work-outs and refinancings. Worldwide, Salans has 750 lawyers globally operating from 21 offices across a combination of key financial centres and emerging market hubs.
Source: Salans LLP