Hypo provides EUR 300m financing for Russia, Romania projects

The international arm of Germany's Hypo Real Estate Group announced the completion of over EUR 296 mln in funds for two separate development projects in Russia and Romania. The bank provided a $89 mln (EUR 56 mln) investment facility to Raven Russia on 29 January 2008. The funding was for the refinancing of Phase 1 of the Krekshino Logistics Park, a 118,000 m² Class A logistics/warehouse facility completed in 2006 and located near Moscow.

Commenting on the Russian project, Harin Thaker, CEO Europe, Middle East & India, Hypo Real Estate Bank International, said: 'This transaction, funded in the first month of 2008, demonstrates our continuing ability to deliver complex financing solutions to the commercial real estate market.'

The second transaction provided development and investment funds for AFI Europe's EUR 234 mln financing of Cotroceni Park, a 75,562 m² retail property in Bucharest, Romania. The transaction was completed on 5 February 2008. AFI Europe is a member of the Africa Israel Group. When completed, Cotroceni Park in Bucharest will be the biggest shopping mall in Romania. It is designed to providing a diverse mix of high-end retail with a strong presence from both local and international brands, a food court, a large leisure area and a 20 screen cinema complex including the city's only IMAX screen. Thaker said: 'Delivering a flagship project in the Romanian real estate market requires skilful management by the investor and the closing of this transaction also reflects our ability to adapt to prevailing market conditions and to continue to deliver tailored financing solutions for our customers.'