Landmark Group gets mezzanine loan for Gdańsk project

Griffin Property Finance, a real estate mezzanine fund, has handed over almost €14.5 (zł.56) million to Landmark Group, a company developing a multi-functional waterfront scheme in Gdańsk. It will rise in Polski Hak, a district of Gdańsk located close to the Old Town and Wyspa Spichrzów (Granary Island).

Landmark Group, which is listed on the Tel Aviv Stock Exchange, plans to build a residential, retail and office complex amounting to 75,000 sqm.

Designed by Daniel Libeskind, the complex will comprise a total of 12 six- and seven-storey buildings, a parking lot for 1,000 cars, and a 193-meter skyscraper, which will be one meter taller than Libeskind's other Polish skyscraper, the Złota 44 project in Warsaw. Construction is expected to start next year and finish by 2012.

"Gdańsk is full of somehow forgotten places, which create ideal conditions for interesting and ambitious projects," said Nimrod Tavi, CEO of Landmark Group.

"We are certain that the complex ... will be part of the process of revitalization of the area surrounding the Old Town. We consider the capital involvement of Griffin Property Finance as a clear signal for the market - it is worth investing in Tri-city."

Another Landmark Group investment in Poland is the Warsaw Golf & Country Club, which is currently under development.

The capital for the investment was granted by Griffin Property Finance in the form of a mezzanine loan. Thanks to this, the investor is able to complete the required down-payment and to optimize the financial structure of the project. The fund receives interest and profits from the project.