Riko to build mixed-use development in Belarus

Riko group, a Slovakia-based company, has secured a contract to build a mixed-use development called Kempinski complex in Minsk, Belarus. The project involves development of the five star Kempinski Hotel, which will have a total area of 22,765 square metres; 81 residential units, which will have a total area of 14,431 square metres; 14,926 square metres of office space; as well as parking and support facilities that will together claim an area of 23,411 square metres.

The estimated value of the entire project is €100 million ($134.27 million). The cost of development of the five star Kempinski Hotel is evaluated to be about €57 million ($76.53 million). The scheme has been designed by Russia-based SPEECH. The project is scheduled for a wrap in the end of 2013.

The company will secure 50% of the required finance from Elite Estate JLCC company and raise the remaining 50% on loan from a syndicate of international banks. The credit risk insurance for the loan will be provided by SID Bank as the agent of the Slovenian state.