abrdn’s AIPUT fund (Airport Industrial Property Unit Trust) has completed a new £350 million senior secured sustainability-linked credit facility.
The facility consists of a split-term loan and revolving credit facility structure, operating initially on a five-year term.
It aims to provide AIPUT with quick and flexible access to debt capital, in addition to existing sources of capital, to finance its acquisition and renovation programme.
The facility should enable the acceleration of the fund’s capital growth and resilience by fast-tracking the expansion of its portfolio of industrial assets into both new and existing gateway locations with growing local populations, consumer spending and high barriers to entry; but well-connected multi-modal transport covering both domestic and international markets.
Wells Fargo is acting as lead arranger, underwriter and agent for the facility.
AIPUT is committed to enhancing its operational efficiency and lowering the environmental impacts of its property assets over its life. With this in mind, the structure of the facility has been designed to align and accelerate the delivery of AIPUT’s net-zero carbon strategy which aims to improve the portfolio’s energy efficiency by decarbonising the fund’s property-level operations by 2040. Sustainability-liked KPIs have also been agreed upon with the underwriter, and if achieved could bring a discount on or an increase to the margin of the financing.
The framework is also expected to help AIPUT deliver smarter and energy-efficient buildings that attract and retain responsibly focused tenants and their staff, improving the quality of the built environment with new features that reduce operational costs and environmental impacts and make better use of the planet’s scarce resources.
AIPUT fund manager, Nick Smith, said: “This strategic credit facility, combined with abrdn’s market-leading investment expertise and operating platform, provides us with a wealth of financing options to execute our responsible investment strategy at scale and pace, forming a key pathway for AIPUT to become a net zero carbon business by 2040.
“We are delighted to be aligning AIPUT’s responsible investment strategy with Wells Fargo at this important time as we execute the next phase of our growth journey and look forward to a highly successful partnership.”
Nick Stoneham, head of real assets debt finance at abrdn, said: “We are extremely pleased to be starting abrdn Real Assets’ relationship with Wells Fargo through this significant debt facility for one of our flagship Real Estate funds. Wells Fargo was able to offer a very attractive and efficient solution through a full initial underwriting of this large facility at competitive pricing, which right-sizes AIPUT’s debt provision for the coming five years in line with its current debt strategy.”
Nicola Free, head of Wells Fargo Commercial Real Estate in EMEA, said: “We are delighted to have completed this sustainability-linked financing with AIPUT by acting as the mandated lead arranger, underwriter and agent for this facility, which will support AIPUT’s commitment to further improve its green credentials and focus on improving its EPC rating, achieve BREEAM certification and reduce carbon intensity.”
Image source: abrdn
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