EBRD SUPPORTS PROPERTY DEVELOPMENT IN ARMENIA

ENP Newswire
July 3, 2009 Friday

$ 5.5 million loan for construction of quality affordable housing
in Yerevan

The EBRD is supporting the property sector in Armenia with a loan
for the construction of a new residential and commercial complex in
the Armenian capital Yerevan.

In the Bank’s first transaction under the EBRD Direct Lending Facility
in Armenia’s property sector, the EBRD is providing $ 5.5 million
to Elite Group, one of the leading real-estate companies in the
country, to build a new modern development in the popular Arabkir
area of Yerevan.

Despite the negative impact of the financial crisis on the luxury
property sector, the demand for competitively-priced apartments in
Armenia is still robust. This project will enable Elite Group to
meet the demand of middle-class and Diaspora Armenians for affordable
housing.

The new complex, called Northern Ray, will consist of two 16-storey
symmetrical towers, 14 of which will be used for residential purposes,
while the first two floors will be offered for commercial use. The
development will have three underground parking levels.

Due to special construction techniques, including mono-block reinforced
concrete frames, the building will have a high earthquake resistance
of up to 9 on the Richter scale.

The EBRD loan is complemented by grant funds of EUR260,000 from the
Bank’s Shareholder Special Fund, which will be used to assist Elite
Group in implementing energy efficiency measures.

Northern Ray will benefit from well insulated windows, low energy
consumption light bulbs and heating system, which will ensure lower
operating costs and reduced bills to future residents.

‘This is an important project for the EBRD’, says Paul-Henri Forestier,
the EBRD Director for Caucasus, Moldova & Belarus. ‘We are especially
pleased to introduce the energy saving component and work with
Elite Group, which is committed to implementing new technologies in
construction and design. I hope this project will set a precedent
for high quality standards in the construction industry.’

‘We are delighted that the EBRD has extended their trust in our company
while brining its expertise, assistance and cooperation. The Bank’s
support gives us an opportunity to enhance our skills to international
standards. This cooperation is not only a new boost to the property
sector, it is also a great motivation and confidence for our future
development in the regions of the country’, said Armen Mkoyan, Elite
Group CEO.

The EBRD is the largest single investor in Armenia. To date the Bank
has committed over EUR240 million in 64 projects in all major sectors
of the economy. Over the past four years, the EBRD’s investment in
Armenia has more than quadrupled and reached EUR125 million across
43 projects.

Press contact:

Loretta Martikian, London – Tel: +44 20 7338 7805; E-mail:
martikil@ebrd.com

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