EBRD mulls EUR 68m lending for development of Croatian mall

The European Bank for Reconstruction and Development (EBRD) is considering providing a EUR 68 mln long-term debt facility for the construction of a shopping mall in Split, Croatia.

The EUR 136 mln project will comprise 68,000 m² of gross leasable retail space and 2,600 parking lots. The developer is Kaufmann i Hofmann, a special purpose vehicle majority-owned by Austria's real estate development companies Wolfgang Kaufmann Beteiligungs, BFK Beteiligungs and Toprent Vermietungs.

The project aims to replicate the success of the almost 100,000 m² City Centre One in Zagreb, Croatia, developed by Kaufmann i Hofmann in 2006, EBRD said in a statement this week. Kaufmann i Hofmann's flagship project in Zagreb brought many retailers for the first time to Croatia and the Western Balkan region, it added.

'The proposed project will contribute to fulfil the unmet demand for international standard retail facilities in regional cities of Croatia and to attract quality tenants to the local market,' the lender said.

The mall will be constructed according to A+ energy standards, using environmentally friendly technologies such as solar panels, and efficient heating and cooling systems. The mall will involve development costs of around EUR 136 mln. Kaufmann i Hofmann has already received a building permit and construction started at the end of October.