Investment manager Europa Capital has signed a €210m (£175m) sustainability-linked loan with RBS International, the largest such deal the bank has struck in the real estate industry yet.
The revolving credit facility will be used by Europa Fund VI, a value-add fund launched in 2019 with €590m in commitments closed to date.
The loan includes margin incentives linked to sustainability targets, including improved waste diversion, green energy usage and minimum EPC ratings of C for the fund’s refurbishment and redevelopment projects.
Recent deals from the fund have included the forward funding of Czero’s £45m build-to-rent scheme in Birmingham and of Mulbury’s £37m BTR scheme in Manchester.
Jason Oram, partner and fund manager at Europa Capital, described sustainability-linked financing as “relatively new to the real estate investment industry” and said the new funding would help the business to meet its net-zero carbon goals.
Earlier this week the investment manager announced that development director Lynn Smith had been promoted to the new role of head of sustainability and development.
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