Monday, 26 July 2021

Acofi Gestion's ...

Its innovative real estate impact debt fund closes first loan. That's what it's about. This post. That email.

I must look at it now.

I don't want to ...

BUT I MUST - !!!

The fund RED VI Impact announces closing its first loan transaction. Established earlier this year and targeting € 600 million, the fund has already pieced together a handful of institutions. This inaugural loan materializes its innovative strategy, with the financing of an office property in the Netherlands for LCN. The collateral is a positive energy asset. 

Yes, office property in the Netherlands. What does that mean to me? The same as everything else. But still I write it. Still I write this. I can't stop. I would like to stop ... but they say it will rain this week. Last week it was too hot, and now it will rain. That's what they say. Those people with the little rain symbols. I hate them. They don't do any real work. They just look out of the window.

The loans to be originated by the fund, managed by Acofi Gestion, will include environmental impact features based on a set of specific actions to be carried out by the borrowers in four key areas, aligned with the UN's Sustainable Development Goals (SDGs) and relevant to the property industry: water management, greenhouse gas emissions, waste management and energy consumption.

Oh, okay ... I mean. Do you know what I mean?

Each of the actions to be undertaken for every loan will include specific capital expenditure items aimed at improving the assets' environmental footprint. Such actions will be determined on a loan-by-loan basis and may include optimized lighting, increased recycling capacity, the planting of trees, or the sourcing of renewable energy. Upon completion of each item, the loan interest rate will decrease. Acofi wishes to incentivize borrowers on their course for better standards, focusing on specific, pragmatic and measurable targets. Furthermore, the loan portfolio will be audited to ensure compliance with the strategy. Lastly, this pioneering approach will be sanctioned by an annual ESG report delivered to fund investors.

I'm hungry. My jeans are falling down a bit, so I must tighten my belt. I've put on a pound of weight in the last week. This only makes sense when you - or I, probably I - realize that it was muscle, not fat. Should I be happy about that? It's day thirty of the thirty-day challenge. Three thousand push-ups in thirty days. Two months ago, I couldn't do one push-up. Not one! Here I am knackered, today, with three thousand.  After thirty days.

RED VI Impact is Acofi's 6th vintage in the European real estate senior debt industry. Fundraising for this initiative has already commenced, capitalizing on the success factors of prior generations, namely direct lending and a focus on the Eurozone's most liquid property markets. With a strong emphasis on real estate impact lending, Acofi Gestion has commissioned EthiFinance to validate and audit the strategy and its implementation.

I will have a cheese sandwich for lunch, and a strawberry cheesecake - one of those small ones. I might have crisps, too. I'm not sure yet. I am very, very hungry.

Simultaneously, the management company announces the final deployment of its 5th vintage, with some € 575 million invested since its launch in July 2017 and covering the largest Eurozone countries. The final loan has recently been extended in the Netherlands. The € 38 million loan finances the largest Dutch property developer, Somerset Capital Partners', for a 94,000 sqm logistics platform at the heart of the country. The asset serves as the omni-channel distribution center for a household name in the Dutch retail market, which is committed to the property under a 15-year lease.

We must listen to the Joes voice ...

Joes Daemen, CEO and founder of Somerset Capital Partners: "We are pleased to have added a new trusted financing partner to our network and are eager to expand our relationship with Acofi towards a prosperous future cooperation."

Or maybe they are the Joes voices. How many Joes are there? I don't know.

Benjamin Debre, deputy head of CRE lending at Acofi Gestion comments: "We are glad to have partnered with the sponsor, outside our home market and under very short time constraints. This loan marks the final deployment of our fifth vintage and paves the way to write a new chapter in Acofi's senior lending history with impact lending."

That was the Benny voice.

There is only one Benny. That's the truth. Only one Benny.

Well ... there is only one Benny today.