Finnish properties investor and developer eQ Community Properties Fund has entered into a €154 mln senior secured loan agreement with Deutsche Bank AG, expanding its lender base.
The collateral for this loan consists of community and healthcare properties in the Helsinki Metropolitan Area and Tampere.
JLL acted as debt and financial advisor for eQ Community Property Fund in the debt financing transaction.
In addition, the fund extended an existing €253 mln senior secured loan facility with its current lenders, Nordea Bank, Danske Bank, Swedbank, and Aktia.
These recent financing arrangements have provided the fund with long-term funding, extended loan maturities, and secured fixed-interest periods. This strengthened financial position will enable the fund to continue investing in community and healthcare real estate.
The head of Real Estate Investments at eQ, Tero Estovirta said: ‘We have worked for a long time and systematically to obtain international debt financing and Deutsche Bank has been one of the most interesting ones already for a while. Generally, financiers have shown strong interest and trust towards Finnish real estate and open-ended funds. Access to debt has clearly improved as interest rate levels decrease. It is possible to reach cost-effective and sustainable financing solutions.’
Samuel Granvik, director, Debt Financing, eQ, commented: ‘Onboarding a prominent international financial institution such as Deutsche Bank underlines the long-term commitment and pioneering ambitions of eQ as a leading Finnish real estate fund manager. This financing arrangement marks a significant milestone, not only for eQ’s real estate funds, but also for the Finnish open-ended funds to reach international debt capital.’
Matt Sadd, Financing Origination, Deutsche Bank, said: ‘The Finnish market offers attractive opportunities in relation to Public Sector-supported real estate. We are very happy to have completed our first transaction with the eQ Group.’
eQ Community Properties Fund is Finland's largest community property investor and developer. Its property portfolio was worth €1.75 bn as of September 2024 and the assets are located in the Helsinki Metropolitan Area and selected growth centres in Finland.
