Asset manager Aviva Investors is providing a £72.9 million (c€84 million) sustainable transition loan to enable investment manager and developer Commercial Estates Group (CEG) to improve the green credentials of its portfolio.
The loan is a senior debt facility for seven-years and comprises fixed- and floating-rate tranches. Aviva Investors has committed to providing £1 billion (c€1.15 billion) in sustainable transition debt for property over the next four years having launched its sustainable transition loans framework in December 2020.
The loan agreement includes key performance indicators (KPIs) linked to sustainability improvements on assets in the portfolio and CEG will receive margin reductions for achieving specific targets.
CEG said it will use the loan to refinance a portfolio of six office assets in the UK regions. Some of the money will be used to help fund development of Globe Point, a 3,515 sq m (37,842 sq ft) office project in the Temple area of Leeds, the first part of a £350 million project. CEG is aiming for BREEAM excellent and EPC A ratings.
Aviva Investors said in a statement that it is providing the financing on behalf of a number of third-party client mandates.