Amsterdam
CBRE Global Investors Agrees Sustainability Linked Revolving Loan Facility with ABN AMRO
31 Mar 2020
CBRE Global Investors has closed a sustainability linked revolving credit facility (RCF) with ABN AMRO. The €45 m plus €15 m accordion facility is for the CBRE European Industrial Fund (EIF) and will be secured against a selection of EIF’s properties at an LTV of c. 40%.
The sustainability linked loan has pre-agreed indicators aligning the loan with EIF’s ESG strategy for its portfolio and positive impact on Sustainable Development Goals (SDG). The Fund’s achievement of annual performance targets directly influences the interest margin (positively and negatively) under the facility agreement.
The sustainability performance targets are focused on four key indicators, all aimed at continual improvement across the portfolio:
The sustainability performance measurement is assured by an independent auditor or an external sustainability rating agency.
This is the first sutainability linked loan that has been arranged for EIF which meets the ESG strategy of the Fund and the requirements of its investors.
Aleksandra Njagulj, Global Head of ESG, CBRE Global Investors commented: “CBRE Global Investors embed environmental, social and governance (ESG) practices in all facets of our investment management. We act to support the United Nations’ Sustainable Development Goals (SDGs), focusing on those where we can achieve material impact. In this case, the climate change mitigation led the formulation of indicators and targets. We have also called on third-party frameworks such as BREEAM and GRESB to add a layer of independent performance measurement. “
Axel Sibmacher van Nooten, Managing Director at ABN AMRO said: “For ABN AMRO the support we can provide to our clients to enhance their sustainability effort, is of strategic importance. As such we are very pleased that we have had the opportunity to contribute to the sustainability goals of the European Industrial Fund, by closing this Sustainable RCF.”
The CBRE European Industrial Fund is an unlisted, semi-open ended fund investing in logistics platforms and cross dock assets in strategic locations in European markets with a core profile.
– ENDS –
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $112.9 billion in assets under management* as of December 31, 2019. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2019 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.
The sustainability linked loan has pre-agreed indicators aligning the loan with EIF’s ESG strategy for its portfolio and positive impact on Sustainable Development Goals (SDG). The Fund’s achievement of annual performance targets directly influences the interest margin (positively and negatively) under the facility agreement.
The sustainability performance targets are focused on four key indicators, all aimed at continual improvement across the portfolio:
- Installation of on-site renewable energy technology (PV)
- Installation of energy efficient lighting (LED)
- Operational green building certification
- Energy efficiency rating
The sustainability performance measurement is assured by an independent auditor or an external sustainability rating agency.
This is the first sutainability linked loan that has been arranged for EIF which meets the ESG strategy of the Fund and the requirements of its investors.
Aleksandra Njagulj, Global Head of ESG, CBRE Global Investors commented: “CBRE Global Investors embed environmental, social and governance (ESG) practices in all facets of our investment management. We act to support the United Nations’ Sustainable Development Goals (SDGs), focusing on those where we can achieve material impact. In this case, the climate change mitigation led the formulation of indicators and targets. We have also called on third-party frameworks such as BREEAM and GRESB to add a layer of independent performance measurement. “
Axel Sibmacher van Nooten, Managing Director at ABN AMRO said: “For ABN AMRO the support we can provide to our clients to enhance their sustainability effort, is of strategic importance. As such we are very pleased that we have had the opportunity to contribute to the sustainability goals of the European Industrial Fund, by closing this Sustainable RCF.”
The CBRE European Industrial Fund is an unlisted, semi-open ended fund investing in logistics platforms and cross dock assets in strategic locations in European markets with a core profile.
– ENDS –
About CBRE Global Investors
CBRE Global Investors is a global real assets investment management firm with $112.9 billion in assets under management* as of December 31, 2019. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE). It harnesses the research, investment sourcing and other resources of the world’s largest commercial real estate services and investment firm (based on 2019 revenue) for the benefit of its investors. CBRE Group, Inc. has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.