Aareal Bank provides € 200 million Green Loan to RedTree Capital

Aareal Bank announces the closing of a financing agreement with French investment manager RedTree Capital.

  • Landmark office building close to Paris to be renovated to highest ESG and market standards

Wiesbaden, 18 July 2022 – Aareal Bank announces the closing of a financing agreement with French investment manager RedTree Capital. The Bank granted a € 200 million green facility to RedTree Capital for the acquisition and refurbishment of a 26,000 sqm office building in Levallois-Perret near Paris. Aareal Bank acted as arranger, lender and agent.

Carré Champerret is located in Levallois-Perret, one of the most dynamic districts in the West of Paris, exuding a positive image and high appeal for both residents and businesses, which is essential for attracting and retaining talent. It offers a high-quality working environment with a balanced mix of tertiary sector and housing. Its central location and access to public transport linking Paris city centre and La Défense make it a popular location for large-scale users.

The property is composed of four independent buildings surrounded by large exterior spaces. Following refurbishment, the asset will meet the highest ESG and property market standards.

First transaction with RedTree Capital

RedTree Capital is an independent and owner-operated real estate investment manager that was established in 2014 by Eric Sasson, former head of Carlyle Europe. To date, RedTree Capital has invested more than € 1 bn with a strong focus on office buildings in Paris and its surroundings.

“We are pleased to start a new collaboration with RedTree and to further grow our sustainable lending portfolio in France with this landmark property”, stated Christof Winkelmann, Member of the Management Board of Aareal Bank. “The Paris office market is characterised by a shortage of supply which drives the demand for large and modern properties towards locations like Levallois-Perret, where tenants and their employees can benefit from a well-developed infrastructure and from easy access to local amenities and restaurants. Office space complying with the highest ESG market standards and with strong property fundamentals will remain a sought-after product.”

Eric Sasson, Chairman of RedTree Capital, added: “RedTree Capital believes in improving the operational performance of assets, including their energy consumption, through redevelopment and refurbishment projects. To achieve this goal, we will invest in smart building and building operating systems and are very pleased to have a proven financing specialist for commercial real estate at our side.”

RedTree Capital was advised in this transaction by Archers, Alliance Notaires Meudon, Clifford Chance and UGGC. Aareal Bank was advised by De Pardieu Brocas Maffei and Allez & Associés.