UNION Group: credit fund completes first transaction
Group was the first fund manager in Norway to be granted a licence to issue private direct loans to businesses. The credit fund UREC has now assisted with the refinancing of a bond loan totalling NOK 770
million.
In close collaboration with BN Bank, UREC has put together an attractive long-term secured financing package for a modern logistics asset in Vestby, Norway.
“This is a win-win situation ensuring a long and flexible financing at a competitive blended interest cost, while the size of the financing package eliminates the need for an equity injection," says Christoffer Hæhre, Managing Director of the credit fund.
BN Bank is offering a total of NOK 575 million of the refinancing, while UREC has facilitated an additional NOK 160 million. The remainder is covered by existing cash in the Debtor. The loan has a maturity of five years, and in line with the fund's strategy, the loan will be private and held to maturity.
“The transaction has a solid asset backing with a competitive total return on the loan. All in all, an attractive risk/reward that is in line with the fund's strategy" says Christoffer Hæhre.
The logistics asset from 2020 is certified as a green building with energy efficiency class A rating (expected), producing more energy than it consumes. The asset fits well into the credit funds profile with a strong focus on ESG and its light green Article 8 classification.
The transaction is a good example of synergies between banks and the credit fund, which provides opportunities to structure debt in a way few other can offer in the Norwegian market.
“We are very pleased with the quality of the investors who have subscribed to the fund. These mainly consist of long-term pension capital and family offices with extensive real estate expertise. We now look forward to assisting in more exciting projects in the future," says Christoffer Hæhre.
For further information, please contact: Christoffer Hæhre, Managing Director UNION Credit
Email: haehre@union.no Mobile: +47 95931585
About UNION Group:
Since our inception in 1984, we have established ourselves as one of Norway's leading commercial real estate companies. During this period, we have developed from being a pure commercial broker to becoming a complete real estate house within asset management, brokerage and analysis. Our goal is to be the preferred real estate partner for investors, landlords, tenants and partners.
The UNION Group consists of three pillars: UNION Asset Management, UNION Commercial property agency and UNION Research. The group is owned and run by active partners and is led by Endre Folge.
