eQ Community Properties Fund – A MEUR 700 Green Financing

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We advised a Nordic financier consortium including Nordea, as the co-ordinator, Aktia, Danske Bank and Swedbank Special in an arrangement in which eQ Community Properties Fund agreed on a significant financing package. The existing financing was replaced 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 loan is classified as green sustainable financing.

The signed financing arrangement enables a 700 million euro financing, out of which the main part is committed loans and part is accordion financing. At the end of September the Fund’s debt capital was 360 million euro. The aim is to diversify the financing base going forward.

“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 Community Properties Fund. The structure includes elements of flexibility and agility, which enable efficient and economical maneuvers. We also welcome a new financier to the fund, Danske Bank, along with the remaining existing lenders.” says Tero Estovirta, eQ’s Head of Real Estate Investments.

eQ Community Properties Fund invests in Finnish health care, service and community properties. The Fund is open for subscriptions four times a year and for redemptions twice a year.