Aareal Bank provides green financing for London hotel

Aareal Bank provides green financing for London hotel

Aareal Bank Thursday said it has closed a green financing agreement with an affiliate of Cerberus Capital Management, L.P. and Highgate.

The companies received a mortgage loan in the upper double-digit GBP million range to refinance the purchase of the Dorsett City Hotel in London.

Aareal Bank said the 5-year senior loan is collateralised by a property that meets sustainability criteria, which the borrower has committed to maintain throughout the term of the loan.

This is the second green financing Aareal Bank has provided according to its Green Finance Framework.

Christof Winkelmann, Member of the Management Board of Aareal Bank, stated: “At Aareal Bank we believe that the Corona pandemic has contributed to a heightened awareness of sustainable management. I therefore expect that more and more sectors of the economy will systematically integrate sustainability requirements into their business models. The financial sector has a prominent role to play in this process. Therefore, it is our intention to steadily increase the share of green buildings in our loan portfolio and we are pleased be able to support Cerberus and Highgate on their path to sustainable investments.”

The Dorsett City Hotel opened in February 2018 in Aldgate, one of the most dynamic and evolving sub-markets in the City of London. Located in the heart of London’s financial district and at the gateway to vibrant East London, the modern 4-star hotel caters for business and leisure travellers alike.

The property spreads across 13 storeys, features 267 rooms and has received a BREEAM Very Good certificate. The BREEAM assessment uses recognised measures of performance to evaluate a building’s specification, design construction and use across eight categories, addressing wide-ranging environmental and sustainability issues.