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Aareal Bank grants green loan to Cerberus and Highgate

Aareal Bank announces the closing of a green financing agreement for a European property.

  • Refinancing of Dorsett City London hotel

Wiesbaden, 16 September 2021 – Aareal Bank announces the closing of a green financing agreement for a European property. An affiliate of Cerberus Capital Management, L.P. (“Cerberus”) and Highgate received a mortgage loan in the upper double-digit GBP million range to refinance the purchase of the Dorsett City Hotel in London. The 5-year senior loan is collateralised by a property that meets sustainability criteria, which the borrower has committed to maintain throughout the term of the loan. This is the second green loan Aareal Bank has provided according to its Green Finance Framework.

The Dorsett City Hotel opened in February 2018 in Aldgate, one of the most dynamic and evolving sub-markets in the City of London. Located in the heart of London’s financial district and at the gateway to vibrant East London, the modern 4-star hotel caters for business and leisure travellers alike. The property spreads across 13 storeys, features 267 rooms and has received a BREEAM Very Good certificate. The BREEAM assessment uses recognised measures of performance to evaluate a building’s specification, design construction and use across eight categories, addressing wide-ranging environmental and sustainability issues.

Cerberus is a global leader in alternative investing with over $55 billion in assets across complementary credit, private equity, and real estate strategies. Highgate is a fully integrated real estate investment firm with a primary focus on the hospitality sector, with a current portfolio that includes over 350 properties or 65,000 hotel rooms owned, managed, asset managed or under development throughout the United States, across Europe, and in 15 Caribbean and Latin American countries.

“Going green” a matter of impact and business

Christof Winkelmann, Member of the Management Board of Aareal Bank, stated: “At Aareal Bank we believe that the Corona pandemic has contributed to a heightened awareness of sustainable management. I therefore expect that more and more sectors of the economy will systematically integrate sustainability requirements into their business models. The financial sector has a prominent role to play in this process. Therefore, it is our intention to steadily increase the share of green buildings in our loan portfolio and we are pleased be able to support Cerberus and Highgate on their path to sustainable investments.”

Bird and Bird advised Aareal Bank on legal matters, and CBRE performed the valuation.

Photographs for editorial use can be downloaded here.

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