LLP Colombia 0  0  0  0  0  0  0  0  0.0000                The proposed project entails a  n approximately   US$  30     m  illion   COP equivalent (COP   77.5     b  illio  n  ) A-Loan and a Parallel Loan of   an equivalent amount   coordinated   by IFC to support LatAm Logistics Pro  perties (LLP or the Sponsor) in the development of Phase I and II of its first   class-A logistic warehousing park in Bogota   (the Project). The warehousing park has a total potential of 252,000 sq  uare meters (sq  m  )   (240,000 sqm of warehousing space and 12,000 sqm of office area mezzanine level), on a plot of 567,300 sqm, and will be developed in 3 phases. The Project entails the construction of approximately 160,000 sqm (including office space and restrooms for employees).   The   plot is located on the Calle 80 (  Tenjo   Municipality), which is one of the most important new logistics clusters in Bogota.          The   p  roject will expand the supply of   scarce   efficient class-A wareho  using space to support the   growth of retailers,   e-  tailers  ,   consumer goods companies  ,   third-party logistic op  erators and manufacturing companies. This new class-A warehousing space will result in increased   efficiency for   tenants   supply   chains and   introducing international green build  ing practices through obtaining IFCs EDGE certification. Project-level Impacts
(i) Increased Availability of logistics infrastructure and reduced supply chain costs for businesses - The Project will add ~160,000 sqms of Class A+ storage and distribution capacity (252,000 if total park is considered) to support the efficient development of the supply chains of manufacturers, retailers/e-tailers and associated third-party logistics providers. Class A+ warehousing parks involve large, modern, flexible and well-located buildings and service infrastructure, conceived to optimize distribution configurations and facilitate scale, throughput and consolidation of inventories and transportation. They offer increased availability of docking ports with levelers for all types of trucks, matched with ample maneuvering yards for large vehicles; the buildings have 12 meters of higher ceilings, increased floor load capacity, long and column free span areas, which together significantly increase the number of pallet positions per unit of GLA when compared to existing Class A, B and C. Common services such as security, maintenance, shared cafeterias and training centers, result in further benefits for tenants. Such advantages of Class A+ structures provide tangible benefits to the typical LLP tenants, retailers/e-tailers, manufacturers and 3PLs.   Some examples are:- Scalable Class A+ warehouses allow retailers to consolidate all stocks (which typically have been in multiple sites) into a single larger and more efficient warehouse, reducing total warehousing stocks.- Similarly, the retailers' suppliers (generally manufacturers) can simplify their distributions into larger and more frequent deliveries to one central location, instead of small and numerous deliveries to multiple locations (stores and multiple distribution centers), reducing their stocks and better optimizing manufacturing set-ups.- Such broad retail-manufacturing supply-chain reconfigurations, are estimated to result in material savings equivalent to up to 1.0-2.0% of retailers' revenues.  
(ii) Economy-wide effects - The Project will foster the creation of direct jobs during both the construction and operation of properties.  During construction, the Project will support approximately 600 direct jobs. Further, approximately 1,200 direct and indirect jobs will be created during the operational phase. The Project will support a significant number of indirect jobs through the supply chains, including the sourcing construction inputs and related services during the development phase and the sourcing of products and services to be sold within completed properties.
(iii) Positive Environmental Impact: LLP has committed to achieve EDGE certification, which results in at least 20% savings in energy, water and in materials consumption compared with benchmarks for equivalent buildings. 

Market-level Impacts
(i) Competitiveness: The Project will provide a positive impact in the local warehousing and industrial property market.  As of today, Class A warehousing parks in Colombia stand at 450,000 sqm -or 4% of total existing supply. In addition, the Project will be the first of Class A+ quality. Given its modern, efficient, and lower cost characteristics, it is expected that LLP will set high industry standards and demonstrate the economic viability of a further refined business model.
(ii) Sustainability:  Currently, the penetration of modern and energy-efficient industrial warehouses in Colombia is negligible. The buildings built under the Project will achieve global best practice in energy efficiency standards and, will be the first Green Building certified warehousing properties in the country.