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19 August 2021, 09:00 pm
Special Investment Fund eQ Commercial Property Fund has agreed on a significant financing package with a Nordic financier consortium. The existing financing was rearranged and the notable growth potential of the fund was secured for years to come. Sustainability is a central aspect in the fund’s operating model and hence the entire bank loan has been engineered as green sustainable financing.
The signed financing arrangement enables an 800 million euro financing platform, out of which the main part is committed loans and part is accordion financing. eQ Commercial Property Fund’s existing senior secured bond is part of this 800 million euro platform. The financiers include Nordea, Aktia, Danske Bank, LocalTapiola and Swedbank. At the end of June Fund’s debt capital was 440 million euro.
“The executed arrangement is considerable in volume as well as from ESG perspective in the real estate industry. A long-term, sustainable financing platform will facilitate the future growth and return potential of the eQ Commercial Property Fund. The structure includes elements of flexibility and agility which enable efficient and economical maneuvers. We also welcome two new banks, Danske and Swedbank, to the consortium along with the existing lenders.” says Tero Estovirta, eQ’s Head of Real Estate Investments.
Special Investment Fund eQ Finnish Real Estate invests in Finnish commercial properties. The Fund is open for subscriptions four times a year and for redemptions twice a year. Since inception, the average annualised return of Fund has been 8.4 % p.a. (net of fees).
Helsinki 19 August 2021
eQ Asset Management Ltd.
Tero Estovirta, Head of Real Estate Investments, eQ Asset Management Ltd, +358 50 593 6194 / tero.estovirta@eQ.fi
eQ Group is a Finnish group of companies specialising in asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and individuals. The assets managed by the Group total approximately EUR 10.7 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets.
More information about the Group is available on our website at www.eQ.fi.