Europa Capital, the pan-European real estate investment manager, has agreed a €210 million sustainability-linked revolving credit facility with RBS International on behalf of its latest value add fund, Europa Fund VI.
The rolling facility agreement includes margin incentives conditional on sustainability linked targets, including improved waste diversion, the use of green energy and minimum EPC ratings of C for the Fund’s major refurbishment and redevelopment projects.
Jason Oram, Partner & Fund Manager at Europa Capital, commented: “Value add investment strategies play an important role in improving the environmental impact of existing real estate by ‘greening’ properties in line with today’s standards. ESG is a priority for our business and we have been looking for new ways to achieve our Net Zero Carbon objectives. Sustainability linked financing is relatively new to the real estate investment industry and we are delighted to be able to incorporate it as part of our wider ESG strategy.
“We are very pleased to have secured this facility with RBS International, who are incredibly experienced in this arena. The loan provides additional incentive, whilst complementing our existing sustainability targets for Europa Fund VI.”
James Hamelin, Director of Institutional Banking Jersey at RBS International, added: “Europa Capital has been a valued client of RBS International for over 15 years now and we have supported them with fund financing across all of their value-add funds. It has been fantastic working with Europa Capital on this transaction and looking at how we can align their financing with their ESG strategy. This is the largest sustainability linked loan RBS International have provided in the real estate sector and demonstrates the Bank’s commitment to assisting our clients in the transition to a more sustainable environment.”