On February 20, 2019, the Ukrainian subsidiary of Arricano Real Estate PLC, the leading developer of shopping malls in Ukraine with European investments, entered into a new loan facility with the Raiffeisen Bank Aval JSC for UAH 140 million (approx. USD 5.15 million) with expires on December 31, 2023 for partial financing of the construction of Lukianivka shopping mall.
“Lukianivka is our priority project and we are systematically and consistently moving towards its implementation. We are happy to realize that the largest financial institutions and banks feel confident about the reliability of cooperation with Arricano and are ready to finance quality projects. Large-scale agreements between developers and banks this year are also an important message for international investors, evidencing the development and the prospects of the commercial real estate sector of Ukraine. Lukianivka shopping mall proposes an innovative multifunctional format of a shopping mall, which architectural concept combines both the historical heritage and the use of the world's best urban solutions,” Mykhailo Merkulov, CEO of Arricano, says.
The terms of this loan agreement imply charging 20.55% per annum. The facility is secured, ahead of the first drawdown, by a mortgage over the Group’s City Mall Shopping and Entertainment Centre (“City Mall”), and will be secured by a pledge of property rights arising out of the lease agreements entered into with lessees of City Mall and a guarantee to be granted by Arricano.