IPUT Real Estate, Ireland’s property company and the largest owner of offices and logistics assets in Dublin, has secured an upsized €300 million revolving credit facility (RCF) with Wells Fargo Bank N.A.
The credit facility includes a €200 million green component, representing the largest green facility in the Irish real estate market. IPUT also raised an additional €200 million in the US Private Placement market in early 2020.
As a result of these transactions the weighted average maturity of IPUT’s debt has increased from 3 years to 7.5 years with an extremely low LTV of 7%, said the company in a statement.
The €200 million green component will be used to finance projects which meet a defined set of sustainability criteria under IPUT’s Green Finance Framework. That framework is based on the ‘Green Loan Principles’ developed by the European Loan Market Association.
During the first quarter, IPUT also raised €200 million from 11 institutional investors through a US private placement offering. This debt raising consisted of two tranches: €75 million at 1.10% repayable in 2030 and €125 million at 1.25% repayable in 2032.
Niall Gaffney, Chief Executive of IPUT Real Estate, said:
“The long-term winners in real estate will be those who place sustainability and the occupier experience at the centre of their investment decisions – attributes we believe are now more important than ever before.”
“Our €200 million green facility will contribute to the funding of the development at our Wilton Park estate. This 600,000 sq. ft. development, which has been fully pre-let to LinkedIn, will bring true placemaking to the city centre while providing the space for significant job creation, reinforcing Dublin’s position as a global digital hub.”
“As we begin the phased exit from COVID-19 restrictions, we are excited to be back on site at both our Tropical Fruit Warehouse and Wilton Park developments, adding what will be two landmark office schemes to Dublin’s CBD.”
Max Sinclair, EVP and Head of UK Commercial Real Estate, Wells Fargo, commented: “IPUT is a leader in the Irish real estate market. Our relationship has gone from strength to strength over the last five years. These two transactions are an important step for IPUT and Wells Fargo is delighted to have been able to assist the company as it continues to develop its business”.