OREANDA-NEWS. September 12, 2013. Sberbank CIB has arranged financing for REGIONS Group. The USD500 mln credit line will be extended for ten years.

The loan is secured by REGIONS Group’s projects in Mytishchi, Krasnoyarsk, St. Petersburg, Cherepovets and Ufa. JUNE retail and entertainment centres (RECs) are located in the aforementioned cities and are part of the Group’s chain which goes under the same name.

The company plans to use part of the funds to refinance existing debt and part to develop new projects, including the construction of three DreamWorks year-round indoor theme parks in Yekaterinburg, Moscow, and St. Petersburg, and also to expand the JUNE REC chain into Syktyvkar, Saratov, Omsk and Penza.

Amiran Mutsoev, Member of the Board of Director of REGIONS Group, commented: “We consider that partnership with Sberbank, Russia’s leading bank, is a vital aspect that will ensure the continued development of REGIONS Group. This loan will enable us to keep realising our plans for development of the JUNE REC chain and also projects of an unprecedented scale for the Russian market – the DreamWorks parks. Thanks to this, soon Russian residents will be able to enjoy European-class entertainment without leaving the country. The project is being carried out under an exclusive licensing agreement between our company and DreamWorks Studios.”

Dmitry Kanushkin, Head of Real Estate Finance Division, Managing Director at Sberbank CIB, remarked: “Sberbank CIB possesses significant experience of working in the real estate financing market. Our track record covers a diverse range of sectors: residential, retail, commercial, and warehousing. REGIONS Group is among the most dynamically developing companies on the Russian commercial real estate market with major project portfolios. I am certain that we can look forward to a long and productive partnership.”