The European Bank for Reconstruction and Development (EBRD) is making an equity investment of up to 35 per cent of an ambitious project to develop an industrial park in Lviv, western Ukraine, creating warehouse and manufacturing space that will help the country expand access to vital services and products.
Russia’s war on Ukraine has strained supply lines into, out of and within the country. Continuing uncertainty with regard to sea routes for imports and exports gives added importance to overland routes to and from the European Union via western Ukraine, and to the warehousing of goods.
The M10 Lviv Industrial Park, a modern multi-phase multi-tenant industrial park located 60 km from the Ukraine-Poland border, is being developed by Dragon Capital Investment Limited (Dragon Capital). It will provide new industrial and logistics warehouse space essential for sustained humanitarian and economic activity in Ukraine both during the war and post-war reconstruction.
The EBRD will invest a total of up to US$ 24.5 million of equity in the US$ 70 million development. Of this, up to US$ 5.5 will be invested in completing Phase 1 of the project. Phase 1, interrupted by the Russian invasion of Ukraine in February, resumed in summer 2022 and completion of the first 14,400-square-metre warehouse complex is expected in the second half of 2023.
“This is an especially important project for Ukraine in these challenging times and the EBRD investing equity will send a strong signal to local and foreign investors. By increasing the availability of high-quality warehousing, the project will expand Ukraine’s access to vital services and products,” said Vlaho Kojakovic of the EBRD.