Press releases – 2008
07 Feb 2008
The Board of Chagala Group, the specialist Kazakh real estate developer and operator listed on the London Stock Exchange, is pleased to announce the agreement of the first tranche of a credit facility (“facility”) with HSBC Bank Kazakhstan (“HSBC”) and Raiffeisen Zentralbank Österreich AG (“RZB”). The US$53,500,000 first tranche will be used alongside the Company’s own resources to finance development projects.
The US$53,500,000, first tranche is repayable over seven years and the overall facility is commercially very attractive for the Kazakhstan market. This tranche can be drawn down in seven sub-tranches by the company and is to finance the ongoing development of 7 of its new projects.
The projects, all located in Western Kazakhstan, include the development of a residential commercial park at Bautino Village, the building of 150 apartments and an office building at Chagala Plaza in Atyrau and a hotel and apartment initiative at Aktau. The facility will also be used to extend and refurbish existing accommodation within some of Chagala’s existing portfolio in Aksai and Uralsk.
This facility will not be used to fund the ongoing development of the Chagala Zere Malls across Kazakhstan as this is being funded separately through the joint venture, in which Chagala has a 50.1% stake.
Commenting on the announcement, Chagala’s Chief Executive Tim Abson said:
“We are delighted to have secured this first tranche of the facility, and welcome HSBC and RZB as bankers. The new financing will enable the Company to proceed more quickly with plans for new and committed developments, expansion and refurbishment. This will ensure that Chagala continues to meet the increasing demand for quality living accommodation, office and recreational facilities in Western Kazakhstan.”
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Notes to Editors
Chagala was formed in 1994 and is the leading real estate developer in West Kazakhstan, exploiting real estate development opportunities related to the emerging offshore oil and gas industry in the region.
The Company’s first facility was opened in 1995 in the city of Atyrau on the Caspian Sea and since then has expanded and diversified considerably.
Chagala’s current property portfolio includes: three hotels and two guest houses catering to businessmen working in the rapidly expanding energy sector, 15,000 sqm of office buildings complying with international standards, 235 fully-serviced, high quality apartments, 14 food and beverage outlets, 3,685sqm of storage and garage facilities and 500,000 sqm of landbank for future development.
Additionally, Chagala has a 50.1% stake in a joint venture with Zere to develop and operate a number of shopping centers across Kazakhstan based in Ust-Kamenogorsk, Atyrau, Aktau, Kostanai, Urlask and Shymkent.
Chagala’s diversified property portfolio is located in a number of key centres in West Kazakhstan, In Atyrau, the administrative centre for Kazakhstan’s oil & gas industry, Chagala has a 110 bedroom hotel, 235 apartments, 15,000 sqm of offices, food and beverage outlets and is developing a further 60,000 sqm of buildings comprising of 150 serviced apartments, a new office complex, a Chagala Zere Shopping Mall and a wellness centre and clinic, all forming the first phase of an overall 220,000 sqm project.
In Bautino, the supply base for the off-shore oil industry, Chagala has a guest house and is expanding its 96 bedroom hotel by adding 50 new bedrooms. The company also has plans to develop utility accommodation for over 1000 people with warehousing and office space.
In Aktau, a major sea port with oil-loading facilities, Chagala is developing an apart-hotel (1st phase 88 units) and a Chagala Zere Shopping Mall. Additionally, Chagala is developing warehousing and has a 3.3 hectare beach front site, on which it intends to develop commercial and residential properties.
In Aksai, Chagala has bought 50.1% of a company that owns and will operate a 150 person accommodation facility used by companies working on the Karachaganak oil and condensate field.
In Almaty, the former capital of Kazakhstan and commercial centre of the country, Chagala has the Company’s Head Office and a guesthouse with 12 suites.
In Uralsk, the regional centre connected with the Karachaganak gas field, one of the biggest gas condensate fields in the world, Chagala owns a 52-bedroom hotel with plans for future expansion as well as plans for a Chagala Zere Shopping Mall.
HSBC Bank Kazakhstan
HSBC Bank Kazakhstan is a 100% subsidiary of HSBC Bank plc
We are the world's local bank. Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network comprises over 10,000 offices in 83 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.
Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.
Raiffeisen Zentralbank Österreich AG (RZB) is the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group. It is a leading corporate and investment bank in Austria and also considers Central and Eastern Europe (CEE) as its home market. RZB is the only Austrian bank with a global network of business units reaching all important finance centres around the globe. It is also present in Asia via its branches and representative offices.
Via listed subsidiary Raiffeisen International Bank-Holding AG, RZB operates one of the largest banking networks in CEE. 17 markets are covered by subsidiary banks, finance leasing companies, a representative office and a number of other financial services providers. Over 13 million customers are attended to through more than 3,000 business outlets.