Azora, the owner of Spanish affordable residential rental platform Nestar, has secured a €640 mln financing package with a group of banks and insurers.
The syndicated mortgage loan will allow Nestar to extend its existing debt maturities and invest in improving its 8,600 unit portfolio.
The package also includes a €40 mln green loan to fund the acquisition of sustainable and energy efficient homes.
The financing agreement has a maturity of five years and is benchmarked to 3-month Euribor plus a spread of 175 basis points.
The syndicated mortgage loan attracted international and Spanish domestic institutions comprising Natixis CIB, Banco Santander, Crédit Agricole, ING, Deutsche Bank and Banco Pichincha España.
Concha Osácar, founding partner of Azora, said: ‘The signing of this agreement allows us to take our strategic plan forward for our affordable residential rental platform while also mitigating against potential financial risks over the next five years. This is an important achievement at a time of market uncertainty, with rising interest rates creating an environment where access to financing is becoming more restrictive. This deal also highlights the strong relationship Azora has with its lenders, alongside their recognition of our ability to manage rental housing in Spain.’
The financing package includes hedging instruments to ensure that the company is not adversely affected by any rise in interest rates over the next five years.
Natixis CIB Bank acted as agent and sole global coordinator and, together with Crèdit Agricole, as joint bookrunner, with both also acting as green loan co-coordinators.
Azora's Nestar has the largest private portfolio of affordable rental housing in Spain and plans to put 1,500 new BTR units on the market in the next two years.
