CBRE Investment Management Issues €49 Million Danish Bond

CBRE Investment Management, on behalf of a fund sponsored by the firm, has successfully issued a Danish bond, raising EUR 49 million (DKK 368 million). The bond has been financed in the local market by a well-known Danish financial institution and a top-three lender in the Danish mortgage market.

The bond will be used by CBRE Investment Management (‘CBRE IM’) to repay the outstanding balance on the fund’s subscription facility and creates balance sheet for the financing of future acquisitions. The bond is secured by three Danish residential assets that have been acquired over the past two years and were initially funded with equity. The most recent transaction is two multi-family properties in Ballerup, Greater Copenhagen. This portfolio comprises 16,974 sq m of high-quality residential space made up of 222 affordable rental units for middle-income households. The assets boast excellent environmental credentials and have DGNB Gold certification.

“In the context of today’s challenging credit market, this closing is an exceptional achievement and one that will put the fund in a prime position to access new opportunities in the market, in 2024 and beyond,” said Duco Mook, EMEA Head of Treasury & Debt Financing at CBRE IM. “The cost of debt remains extremely attractive in Denmark, compared to other European countries. Overall, the bond issuance has only a limited impact on the fund’s weighted average cost of debt and the fund-level loan to value (LTV) will remain well below our 25% target.

“The issuance of this bond marks another important milestone in our long-term strategy for this fund, whereby different financial products are used to optimise the balance sheet while securing debt that is accretive to returns.”

The bond has a maturity of five years, with extension options of up to 30 years in total. An all-in fixed interest rate (coupon) of 3.6% was achieved, consisting of a margin of 0.5% and a base rate of 3.1%.

About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $144.0 billion in assets under management* as of March 31, 2024, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management 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 assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.