German lender Aareal Bank has provided a €200 mln green loan to French investment manager RedTree Capital.
The facility has been granted for the acquisition and refurbishment of a 26,000 m2 office building in Levallois-Perret near Paris. Aareal Bank acted as arranger, lender and agent.
The property is composed of four independent buildings surrounded by large exterior spaces. Following refurbishment, the asset is expected to meet considerable ESG standards.
The deal is Aareal's first transaction with RedTree Capital, an independent and owner-operated real estate investment manager that was established in 2014 by Eric Sasson, former head of Carlyle Europe.
To date, RedTree Capital has invested more than €1 bn with a strong focus on office buildings in Paris and its surroundings.
Christof Winkelmann, member of the management board of Aareal Bank, said: 'We are pleased to start a new collaboration with RedTree and to further grow our sustainable lending portfolio in France with this landmark property.
'The Paris office market is characterised by a shortage of supply which drives the demand for large and modern properties towards locations like Levallois-Perret, where tenants and their employees can benefit from a well-developed infrastructure and from easy access to local amenities and restaurants.
'Office space complying with the highest ESG market standards and with strong property fundamentals will remain a sought-after product.'
Eric Sasson, chairman of RedTree Capital, added: 'RedTree Capital believes in improving the operational performance of assets, including their energy consumption, through redevelopment and refurbishment projects.
'To achieve this goal, we will invest in smart building and building operating systems and are very pleased to have a proven financing specialist for commercial real estate at our side.'
RedTree Capital was advised by Archers, Alliance Notaires Meudon, Clifford Chance and UGGC. Aareal Bank was advised by De Pardieu Brocas Maffei and Allez & Associés.
