Aviva plc’s global asset management business Aviva Investors’ Real Estate Debt team has surpassed its £1 billion sustainable transition financing goal, beating its target, set just 18 months ago, by 3 years.
The achievement was unveiled today with the announcement of a £227 million sustainability-linked refinancing to property group Romulus.
Gregor Bamert, Head of Real Estate Debt at Aviva Investors, said:
“We are delighted to build on our long-standing relationship with Romulus, a business which has shown great willingness to incorporate sustainability metrics across the full facility, against assets which are well-located and of high quality. Equally, it is great to have a long-standing borrower client help us reach our £1 billion origination target.”
London-based investment and development company Romulus owns and manages a mixed-use portfolio of over one million square feet. Under the new financing, the borrowing costs paid by Romulus will be tied to sustainability-linked KPIs, with more attractive borrowing rates available if environmental improvements are achieved in the assets being lent against, which include assets in the office, hotel, leisure and retail sectors across London.
Ben Richardson, Finance Director at Romulus, said:
“We are very pleased to extend our relationship with Aviva Investors and to have agreed a new, long-term facility, particularly one that recognises Romulus’s creative ability to continually add significant value to our investment portfolio and allows us to align our borrowing activities with the sustainability targets we have set for the business.”
The refinancing was completed on behalf of Aviva UK Life’s annuity business. Marcus Mollan, Director of Annuity Asset Origination at Aviva UK Life, said:
“Sustainable investing plays a critical role in our annuity business; the investments we make need to stand the test of time and be fit for purpose in a changing world. This is a fantastic achievement by our colleagues in the Real Estate Debt team at Aviva Investors and underlines their deep expertise.”