SIL Group has business interests since 1996 in various sectors, including five factories spanning a variety of industrial production, such as furniture, water bottling and a flour mill. The Group also owns service operations, including wholesale and retail trade, warehousing, hotels and catering services, construction and real estate, and banking.

The total project cost is estimated at $11.1 million equivalent, which includes a $5.2 million A loan proposed for IFC’s own account.

5.20 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.20
Equity

* These investment figures are indicative

The Airarat center is strategically located downtown Yerevan on an 18,000 m2 triangular area flanked by three major streets: Tigran Mets Avenue, Khorenatsy Str. and Agatangeghosi Str.

The project will have a significant impact on 1,000 existing retailers who will benefit from improved facilities and on approximately 500 new retailers who are able to lease newly available space. The project will also provide small retailers with improved common retail facilities and adjacent theater complex that will draw more demand for their services and should result in lower quality-adjusted rents than they would otherwise face. Armenia’s capital, Yerevan, is already seeing improved retail services thanks to the recent construction and renovation of three other shopping centers, most of which charge a higher rental price and cater to a more affluent market. Narek will contribute to this trend, complementing the other shopping malls by catering to a cross section of lower-middle to upper-middle range shoppers who look for both value and convenience; The role of IFC in this project is to help a competent sponsor and valued IFC client seize the opportunity in the growing retail and retail property markets in Armenia; and in so doing, help increase confidence in a frontier country’s developing private sector.

Environmental, social and health and safety issues that may be associated with this project and which will be reviewed during project appraisal include land acquisition and planning procedures, impact on existing tenants, life and fire safety of the refurbished and new buildings including mall design, fire protection systems, safety housekeeping and emergency response, environmental and occupational health and safety management systems including tenant management, solid waste treatment and disposal, waste water treatment and disposal, and safety during construction.
Location of environmental documents in locally affected community
Environmental documentation will be made available at the following location: Narek – Office Chelyuskincineri Str. #60 Yerevan Armenia