Financed ProjectsMarriott Sofia - Real Estate Development

Identification Code:

OP/17/0003

Total Operation Cost:

98.931.000

Maturity:

156 months

Operation Status:

Description and Purpose of the Operation:

Provision of up to EUR 32 M long-term project finance loan to the Borrower with the proceeds earmarked to finance the construction of the first Marriott Hotel in Bulgaria, residential and retail area.

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

Loans

Sector:

Real Estate

Domain:

Private

Borrower/Client:

I Tower Development JSC (Bulgaria)

Co-Financiers/Participants:

Eurobank Bulgaria AD, Bulgaria

Guarantors/Sponsors:

n.a.

Developmental and Regional Cooperation Impact:

The Project will have both direct positive impact and indirect (through spillovers) positive impact on the overall economy, help to create more jobs, improve service provision by increasing competition, increase service export revenues. Once completed, the project will likely improve competitiveness in real estate and tourism, bring international know-how and push to improve human capital. Development will take place in a prime location in the city center, thereby its contribution to "regional development" will likely be limited. There are already several new office spaces around the plot and high-end retail shops. However, the project will likely contribute to better service by increasing the supply of offices and shops, thereby enhancing competition in the city center.

Environmental Classification and Impact (summary):

Screened E&S Category B. Construction and operation of the building complex downtown Sofia is associated with limited E&S impacts, which can be readily mitigated and/or avoided by adhering to generally accepted performance standards, guidelines and design criteria for construction and operation of residential and commercial buildings and hotels. The management of all the related E&S issues have been delegated entirely to the general contractor which will be in charge for all the environmental, labor and health and safety aspects of the project during the construction stage. During the operation stage of the hotel complex the corporate E&S standards of Marriot will apply in full. These relate to labor and working conditions, HR policies, environmental performance with regard to water and energy use, fire safety, and solid waste management. Overall, the building complex is expected to be constructed and operated in line with existing good practices, and in compliance with applicable environmental, labor, and health and safety legal and regulatory requirements.

Operation Leader:

General Industries, Transport, Tourism 2

E-mail:

gitt2@bstdb.org