Aviva agrees £73m green loan with CEG
Aviva Investors has provided a £72.9m green loan to investor/developer Commercial Estates Group.
The senior debt facility, which is provided over seven-year fixed- and floating-rate tranches, forms part of Aviva Investors’ commitment to originating £1bn in sustainable transition real estate debt over the next four years, following the launch of its proprietary Sustainable Transition Loans Framework in December last year.
The transaction is structured with KPIs that are linked to sustainability improvements on assets in the portfolio. CEG will benefit from a margin reduction for delivering against specific targets, which will be assessed annually throughout the life of the facility.
Aviva Investors has provided a £72.9m green loan to investor/developer Commercial Estates Group.
The senior debt facility, which is provided over seven-year fixed- and floating-rate tranches, forms part of Aviva Investors’ commitment to originating £1bn in sustainable transition real estate debt over the next four years, following the launch of its proprietary Sustainable Transition Loans Framework in December last year.
The transaction is structured with KPIs that are linked to sustainability improvements on assets in the portfolio. CEG will benefit from a margin reduction for delivering against specific targets, which will be assessed annually throughout the life of the facility.
CEG will use the loan proceeds to refinance a portfolio of six regional office assets, with a portion of it used to part-fund the development of Globe Point, a 37,842 sq ft grade-A office (pictured) in the Temple area of Leeds, which forms the first part of a £350m project by CEG.
Gregor Bamert, head of real estate debt at Aviva Investors, said: “CEG has a stated commitment to sustainability and improving the green credentials of its portfolio, which both parties were keen to incorporate into the loan. It is also pleasing to be able to fund the development of a new high-quality asset such as Globe Point. Despite short-term headwinds in the local office market, we are confident this portfolio will perform strongly, given CEG’s active management capability and the quality of buildings it produces.”
CEG chairman Gerard Versteegh added: “Our approach to sustainability is ambitious and embedded into everything we do. We continue to push the innovation boundaries to ensure wellbeing, technology and sustainability are at the heart of Globe Point.”
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