LHI is majority owned by Old Mutual Property, which is part of Old Mutual Limited, a major South African financial conglomerate, and by AG Capital (AGC) Group, a leading regional real estate group.

Old Mutual Limited is a publicly listed company with the South African Public Investment Corporation holding 17% and BlackRock holding 6%; remaining shareholders hold less than 5%. AGC is controlled by Christo Iliev, the founder of AG Capital Group, and is a real estate focused group of companies with presence in Romania, Bulgaria and Poland. AGC has commercial and residential real estate platforms and partners with international institutional investors in the CEE region.

The proposed sustainability-linked investment consists of a financing package of €150m, comprised of: (i) a long-term senior secured loan of €45m from IFC’s own account, (ii) a long-term senior secured loan of €65m from IFC acting in its capacity as the implementing entity for the Managed Co-Lending Portfolio Program, and (iii) a convertible instrument of €40m from IFC’s own account.

IFC financing will be used towards: (i) the acquisition of income generating assets as well as the development of new projects in the logistics and the light industrial market (€140m), as well as (ii) partial refinancing and refurbishment of the existing office portfolio (€110m).

 Project assets are located in both Romania and Bulgaria, including the capital cities of Bucharest and Sofia, as well as their surrounding counties/provinces and other key hubs in the two countries.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site specific, largely reversible, and readily addressed through existing mitigation measures and good international industry practices (GIIP). Key E&S risk and issues include: (i) the company's management and monitoring systems to assess and manage E&S risks and impacts from its operations, as well as those related to the construction of new logistic parks; (ii) consistent management of labor and working conditions, OHS policies and practices and contractor management; (iii) life and fire safety risk assessment and management and emergency preparedness and response; (iv) resource efficiency (energy and water); (v) monitoring and management of air emissions, waste, wastewater and hazardous materials; and (vi) the company's stakeholder engagement activities related to E&S.