EBRD, IFC to invest in Strok's GSHR hotel company

ZAGREB, 18.6.2007.

The European Bank for Reconstruction and Development and the International Finance Corporation, the World Bank investment fund specialised for the private sector, will invest EUR 130 million in Goran Strok's GS Hotels & Resorts (GSHR) company, which owns the Adriatic Luxury Hotels (JLH) chain in Croatia.

An investment contract was signed in London on June 14, EBRD's London Office and the Dubrovnik-based JLH reported on Monday.

The amount includes a loan and investing in GSHR's equity and will be used for the further development of GSHR facilities and other hotels it manages. The loan amounts to EUR 93 million, of which EUR 38 million will be syndicated in Hypo Alpe Adria bank.

EBRD will invest in 25.1% and IFC in 12% of GSHR Holdings Limited's equity.

The investment envisages longer repayment deadlines and GSHR's consolidation. (Hina)