Europa Capital signs RBS’s largest green real estate loan

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. To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews