25.8.2021

Special Investment Fund eQ Commercial Property Fund – A MEUR 800 Financing Platform

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We advised a Nordic financier consortium including Nordea, Aktia, Danske Bank, LocalTapiola and Swedbank in an arrangement in which Special Investment Fund eQ Commercial Property Fund agreed on a significant financing package. 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, 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. At the end of June, the 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 the fund has been 8.4 % p.a. (net of fees).