Aareal Bank has completed a green financing agreement with an affiliate of Cerberus Capital Management and real estate investment company Highgate to refinance the purchase of the Dorsett City Hotel.
The mortgage loan, which is in the upper double-digit GBP million range, is collateralised by a property that meets sustainability criteria, which the borrower has committed to maintain throughout the term of the loan. This is the second green loan Aareal Bank has provided according to its Green Finance Framework.
The Dorsett City Hotel opened in February 2018 in the Aldgate area. The property spreads across 13 storeys, features 267 rooms and has received a BREEAM Very Good certificate.
The BREEAM assessment uses recognised measures of performance to evaluate a building’s specification, design construction and use across eight categories, addressing wide-ranging environmental and sustainability issues.
“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,” Christof Winkelmann, member of the management board of Aareal Bank, said.
“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.”