AEW Participates in Pan-European Green Loan
The debt platform operated by AEW, an affiliate of Natixis Investment Managers, has participated in a green loan to finance four office assets across Europe.
AEW took a €30m participation in the €417m senior loan, which was arranged by lead two large banks. The loan will be used to finance the purchase and renovation by an Asian sovereign wealth fund of offices in Ireland, The Netherlands, Germany and Poland.
The financing qualifies as a green loan under Loan Market Association (LMA) principles. According to these principles, proceeds of the loan must be used to create clear environmental benefits. In this case, the renovation of the offices will, among other benefits, create energy efficiencies, promote the wellbeing of employees working in the buildings, and have a positive impact on the local neighbourhood.
Under the principles, there must be a clear process for project evaluation which covers the selection of the asset as well as its subsequent management. Borrowers should establish an internal governance process to track and monitor the allocation of funds that are used for green projects.
In addition, reporting from the sponsor to the lenders must be formal and regular. At a minimum, reporting should be carried out annually, but quarterly reports on sustainability issues are preferred by many lenders.
Cyril Hoyaux, Head of the AEW real estate debt platform, says ESG is integral to its pan-European co-lending approach. “We are not equity investors,” says Hoyaux. “We don’t manage buildings, but as a lender we believe we can help make a positive impact on the ESG components of real estate transactions.”
The work to comply with sustainability regulations in Europe is considerable, he adds, and represents an ongoing task. “Our efforts to improve our ESG performance will never end, it’s a constant stream of improvement,” Hoyaux says.
“Just because we meet today’s criteria, that doesn’t mean we can stop there. The scope for ESG is huge and success in addressing it is critical for us and for our clients.”
For further reading:
AEW SA
An affiliate of Natixis Investment Managers
Privately-held French "Société anonyme à conseil d’administration".
Real-estate investment manager under n°T 8324 delivered by the Prefecture de police de Paris.
Share capital: €17,025,900
RCS Paris: B 409 039 914
22 rue du Docteur Lancereaux 75008 Paris, France
www.aew.com
AEW Sarl
AIFM Licensed by the Commission de Surveillance du Secteur Financier on January 09, 2015 under number A00001174
Registered office: 5 Allée Scheffer, L 2520 Luxembourg, Grand-Duché du Luxembourg.
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no guarantee that developments will transpire as may be forecasted in this material.
AEW took a €30m participation in the €417m senior loan, which was arranged by lead two large banks. The loan will be used to finance the purchase and renovation by an Asian sovereign wealth fund of offices in Ireland, The Netherlands, Germany and Poland.
The financing qualifies as a green loan under Loan Market Association (LMA) principles. According to these principles, proceeds of the loan must be used to create clear environmental benefits. In this case, the renovation of the offices will, among other benefits, create energy efficiencies, promote the wellbeing of employees working in the buildings, and have a positive impact on the local neighbourhood.
Under the principles, there must be a clear process for project evaluation which covers the selection of the asset as well as its subsequent management. Borrowers should establish an internal governance process to track and monitor the allocation of funds that are used for green projects.
In addition, reporting from the sponsor to the lenders must be formal and regular. At a minimum, reporting should be carried out annually, but quarterly reports on sustainability issues are preferred by many lenders.
Cyril Hoyaux, Head of the AEW real estate debt platform, says ESG is integral to its pan-European co-lending approach. “We are not equity investors,” says Hoyaux. “We don’t manage buildings, but as a lender we believe we can help make a positive impact on the ESG components of real estate transactions.”
The work to comply with sustainability regulations in Europe is considerable, he adds, and represents an ongoing task. “Our efforts to improve our ESG performance will never end, it’s a constant stream of improvement,” Hoyaux says.
“Just because we meet today’s criteria, that doesn’t mean we can stop there. The scope for ESG is huge and success in addressing it is critical for us and for our clients.”
For further reading:
- AEW Finances Pan-European Logistics Deal
- AEW consolidates real estate debt platform ahead of planned growth
- AEW and Natixis IM in Refinancing of Iconic ENI Headquarters
- Real Estate Debt Helps Investors Ride out Crisis
- AEW/Ostrum AM Invest €64m in German Residential Property
- Covid-19: What is the impact on Commercial Real Estate Debt in Europe?
- AEW and Ostrum Asset Management complete final investments in Senior European Loan Fund II (SELF II)
- Bricks, Mortar and Loans
- Real Estate Debt is the Real Deal
An affiliate of Natixis Investment Managers
Privately-held French "Société anonyme à conseil d’administration".
Real-estate investment manager under n°T 8324 delivered by the Prefecture de police de Paris.
Share capital: €17,025,900
RCS Paris: B 409 039 914
22 rue du Docteur Lancereaux 75008 Paris, France
www.aew.com
AEW Sarl
AIFM Licensed by the Commission de Surveillance du Secteur Financier on January 09, 2015 under number A00001174
Registered office: 5 Allée Scheffer, L 2520 Luxembourg, Grand-Duché du Luxembourg.
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
75013 Paris
www.im.natixis.com
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no guarantee that developments will transpire as may be forecasted in this material.