DEAL - FINANCE - CAPITAL MARKETS - SUSTAINABILITY
Arendt has acted as borrower’s counsel to Cromwell European Real Estate Investment Trust (“CEREIT”) in a EUR 70,630,000 sustainability-linked financing (the “Facility”) governed by Luxembourg law. The Facility includes an accordion mechanism for the increase of the total facility amount up to EUR 110,000,000.
CEREIT’s EUR 2.5 billion portfolio comprises 110+ predominantly freehold properties in or close to major gateway cities in the Netherlands, Italy, France, Poland, Germany, Finland, Denmark, Slovakia, the Czech Republic, and the United Kingdom with an aggregate lettable area of approximately two million sqm and 800+ tenant-customers. CEREIT is listed in Singapore and is managed by Cromwell EREIT Management Pte. Ltd., a wholly owned subsidiary of Cromwell Property Group, a real estate investor and fund manager with operations in 14 countries, listed on the Australian Securities Exchange Ltd.
The Facility has three sustainability linked KPIs that are set and measured on an annual basis over the term of the Facility. These KPIs are: (i) incremental increase in the numeric overall score of the annual real estate assessment issue by Global Real Estate Sustainability Benchmark for CEREIT, (ii) increase in the number of green building certifications achieved, such as BREEAM, LEED or HQETM, and (iii) increase in the proportion (expressed as a percentage) of leases and other agreements with tenant-customers which include green clauses over the total number of leases and other agreements in CEREIT’s portfolio.
CEREIT has been advised on all Luxembourg legal matters by a team from the international law firm Arendt & Medernach specialising in Finance & Capital Markets Law, led by partner Dominik Pauly.
Our Arendt Finance & Capital Markets team involved: Dominik Pauly, Partner, Serge Zeien, Counsel, Peter Vedev and Javier Ruiz Lorente, Associates.