German lender Aareal Bank announced on Thursday that it has closed a green financing agreement with an affiliate of Cerberus Capital Management and Highgate to fund the acquisition of the Dorsett City Hotel in London.
Cerberus and Highgate have received a five-year senior mortgage loan in the upper double-digit sterling million range to refinance the purchase of the asset, which opened in February 2018 in Aldgate, a submarket of the City of 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.
Christof Winkelmann, member of the management board of Aareal Bank, said: '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.'
Bird and Bird advised Aareal Bank on legal matters, and CBRE performed the valuation.
