German investment manager Aukera Real Estate is providing €130 mln in financing for a mixed-use project in Luxembourg marketed by Silverfinch Property & Asset Management.
The German investment manager will provide the loan through the Aukera Real Estate Debt Fund.
Scheduled for completion by the end of the year, the Connection office/retail asset will offer 49,400 m2 of rental space, of which 50% is already pre-let.
The Green Core asset will be retained in Connection’s long-term investment portfolio.
Located at Rue de Bitbourg 21-25, the property provides quick access to Luxembourg city centre as well as to the airport. The asset is a Nearly Zero-Energy Building (NZEB) with a BREEAM “Excellent” rating and an “AAA” Energy Performance Certificate (EPC) rating. Thanks to its high energy efficiency, the building offers significantly lower operating costs than the Luxembourg market average.
Florian Niebur, investment manager at Aukera Real Estate, commented: ‘With this bridge-to-exit financing for a prime mixed-use project carrying a BREEAM rating of ‘Excellent’, we were able to provide a credit facility at attractive conditions backed by a sustainable and future-proof asset as collateral, thereby taking optimal advantage of current market conditions for the benefit of our investors. The financing is enabling us to increase the value of this Green Core property asset in a difficult market environment while also permitting an optimally timed exit.’
Kindy Fritsch, managing director at Connection Property Development, added: ‘The financing is enabling us to increase the value of this Green Core property asset in a difficult market environment while also permitting an optimally timed exit through a subsequent refinancing once the project is completed and stabilised.’
