IFC Investment in Kazakhstan’s Retail Sector to Help Create Jobs, Spur Growth
In Almaty:
Assel Choibekova
Phone: + 727 2 980 580
E-mail: achoibekova@ifc.org
In Moscow:
Nezhdana Bukova
Phone: + 7 495 411 7555
E-mail: nbukova@ifc.org
In London:
Carmen Powell
Phone: + 44 (207) 286 54 39
E-mail: cpowell@ifc.org
Almaty, Kazakhstan, May 20, 2009—IFC,
a member of the World Bank Group, is investing $25 million in the Eurasia
Real Estate Development Company to help build a high-quality retail center
that is expected to create about 10,000 jobs and spur sector growth in
Kazakhstan.
IFC’s investment will help Eurasia RED establish a 100,000 square-meter
shopping and entertainment center in Almaty, Kazakhstan’s largest city
and commercial center, to address the shortage of modern retail space.
The first phase involves the completion of the A’port Raimbek, a 55,000
square-meter retail center scheduled to open in June 2009. The second phase
is a 45,000 square-meter extension project that will follow in the near
future.
“This project will help create jobs and serve as a catalyst for additional
improvements in Almaty’s infrastructure,” said Shahbaz Mavaddat, IFC
Director for Southern Europe and Central Asia. “IFC’s financing will
contribute to the city’s ongoing urban-renewal efforts and its competitiveness
within the region. It will also help increase the stock of modern real
estate and retail infrastructure.”
IFC is also planning to provide an additional $20 million at a later stage
and to mobilize additional funding from parallel lenders to support the
project. Kazakhstan’s retail sector is underdeveloped and dominated by
independent shops and other small businesses. Many retailers in Almaty
are keen to expand, but retail space is limited. As the city’s continues
to grow as a major financial and business hub for Central Asia, demand
for retail space will only increase.
Eurasia RED, a Hungarian company, is a commercial real estate development
company that specializes in retail centers in Kazakhstan. The company’s
pipeline of projects includes A’port Kulja, an 80,000 square-meter shopping
center in Almaty.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
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