Aviva Investors provides additional GBP50m in sustainability-linked financing to Big Yellow Group
Aviva Investors, the global asset management business of Aviva, has completed a further GBP50 million financing agreement with Big Yellow Group, the UK-based self-storage company, as it continues to expand its sustainability-linked financing programme.
The loan, a seven-year facility, is secured against a portfolio of purpose-built self-storage assets located predominantly in London and South East regions of the UK. It is the latest transaction as part of Aviva Investors’ Sustainable Transition Loans Framework, which launched in December 2020 with a commitment to originating GBP1 billion in climate transition real estate debt by 2025.
A set of KPIs has been included as part of the agreement, linked to improvements in the sustainability credentials of Big Yellow’s portfolio of buildings. These include the continued installation of solar panels across properties which will reduce emissions and running costs, and the business being on-track to achieve ‘Net Renewable Energy Positive’ status by 2030. Big Yellow Group will benefit from a margin reduction on the loan, conditional on achieving these targets and which will be assessed on an annual basis over the full life of the agreement.
The deal also extends Aviva Investors’ existing relationship with Big Yellow Group, having provided a £35 million loan with sustainability features in March 2020 and an additional GBP100 million facility in 2012.
Gregor Bamert, Head of Real Estate Debt at Aviva Investors, says: “We are pleased to extend our existing relationship with Big Yellow Group and to also see the business continue its commitment to further improving its green credentials. This facility includes a set of sustainability goals and indicators which are ambitious and fully aligned with our Sustainable Transition Loans framework, as we continue to seek ways of making sustainability a more material consideration for borrowers and support the transition towards a low-carbon future. In doing so, companies such as Big Yellow Group will benefit from more favourable lending terms, whilst our investor clients will see a reduction in the carbon footprint of their portfolios.”