IPUT agrees largest green revolving credit facility in Irish real estate market
Irish property company IPUT Real Estate (IPUT) has agreed a new and upsized EUR300 million revolving credit facility (RCF) with Wells Fargo Bank.
In line with IPUT’s corporate values and commitment to responsible investment, the RCF includes a EUR200 million green component, representing the largest green facility in the Irish real estate market.
IPUT also raised an additional EUR200 million in the US Private Placement market in early 2020. As a result of these transactions the weighted average maturity of IPUT’s debt has increased from three years to 7.5 years with an extremely low LTV of 7 per cent.
IPUT has upsized its existing RCF with Wells Fargo by EUR50 million to EUR300 million. IPUT was the first Irish property company to sign the UN Principles for Responsible Investment in 2019 and, within the scope of the upsized RCF, has put in place the largest green finance facility in the Irish real estate market. The EUR200 million green component will be used to finance projects which meet a defined set of sustainability criteria under IPUT’s Green Finance Framework. That framework is based on the ‘Green Loan Principles’ developed by the European Loan Market Association. The relevant criteria include a minimum LEED Gold equivalent rating for environmental efficiency, a defined improvement in a building’s BER rating and, a range of other renewable and energy efficiency metrics.
During the first quarter, IPUT also raised EUR200 million from 11 institutional investors through a US private placement offering. This debt raising consisted of two tranches: EUR75 million at 1.10 per cent repayable in 2030 and EUR125 million at 1.25 per cent repayable in 2032.
Niall Gaffney, Chief Executive of IPUT Real Estate, says: “The long-term winners in real estate will be those who place sustainability and the occupier experience at the centre of their investment decisions - attributes we believe are now more important than ever before.”
“Our EUR200 million green facility will contribute to the funding of the development at our Wilton Park estate. This 600,000 sq ft development, which has been fully pre-let to LinkedIn, will bring true placemaking to the city centre while providing the space for significant job creation, reinforcing Dublin’s position as a global digital hub.”
“As we begin the phased exit from Covid-19 restrictions, we are excited to be back on site at both our Tropical Fruit Warehouse and Wilton Park developments, adding what will be two landmark office schemes to Dublin’s CBD.”
Pat McGinley, Chief Operating Officer of IPUT Real Estate, adds: “The EUR200 million US private placement transaction represents a further diversification of our capital base and was secured at very attractive fixed interest rates from a number of large institutional investors.”
Max Sinclair, EVP and Head of UK Commercial Real Estate, Wells Fargo, says: “IPUT is a leader in the Irish real estate market. Our relationship has gone from strength to strength over the last five years. These two transactions are an important step for IPUT and Wells Fargo is delighted to have been able to assist the company as it continues to develop its business.”