The Sponsor of the Project is Iulius Holding SRL, a privately held, vertically integrated Romanian developer and operator of mixed-use real estate with 16 income-producing properties comprised of large retail schemes and Grade A offices. Iulius Holding SRL is wholly owned by Mr. Iulian Dascalu, a successful and experienced Romanian real estate developer, originally from Iasi.

The borrower of the Phase 1 property will be Palas Campus SRL, an Iasi-based special purpose vehicle (“SPV”),  owned 50% by the Sponsor and 50% by Mr. Dascalu. A similar SPV will be established for Phase II, but this has not yet happened as this phase is c.12 months behind Phase I. Both SPVs (the “Companies”) will directly own and operate their respective properties.                                                   

 The Project cost is estimated at €231.9 million for the construction and development of the Phase I and Phase II properties, of which 40 percent (€92.8 million) would be funded with equity provided by the Sponsor and 60 percent (€139.1 million) with debt . The Phase I development is expected to precede the Phase II development.

For Phase I, the Project involves a 10.5 year senior loan of up to €28.2 million from IFC’s own account, and, a 10.5 year senior syndicated loan of up to €23.8 million , and a 10.5 year senior loan of up to €20.3 million from IFC acting in its capacity as implementing entity for the Managed Co-lending Portfolio Program (MCPP).

For Phase II, the Project involves a 10.5 year senior loan of up to €27.1 million from IFC’s own account,, and a 10.5 year senior syndicated loan of up to €20.3 million, and a 10.5 year senior loan of up to €19.5 million from IFC acting in its capacity as implementing entity for the Managed Co-lending Portfolio Program (MCPP).

  Iasi, Romania                                                 

The proposed investment is expected to have limited environmental and social (E&S) impacts that will be site-specific, with none anticipated to be significant. Further, the impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections. Thus, this is a Category B project in accordance with IFC’s Policy on Environmental and Social Sustainability.

Key E&S issues applicable for this investment are: (i) the design and construction of buildings in accordance with national construction codes and standards, particularly related to seismic resistance, and life and fire safety; (ii) the Companies’ E&S management systems, including their internal capacities and staffing, to undertake their operations in a manner consistent with IFC Performance Standards; (iii) the effective implementation of the environmental, occupational health and safety (OHS) management plans during construction; (iv) energy efficiency and other resources consumption during buildings operation, and (v) stakeholder engagement and community consultations.