Aukera Real Estate AG is lending €130m through its Aukera Real Estate Debt Fund to Connection Property Development S.A. (Connection). The senior secured facility will be used to finance CONNECTION, an office/retail mixed-use property being marketed by Silverfinch Property & Asset Management S.A. and offering around 49,400m2 of rental space. Completion is scheduled for the end of the year, and the Green Core asset will remain in Connection's long-term investment portfolio. 50% of the property is already pre-let.
The property is located at Rue de Bitbourg 21-25, with quick access to Luxembourg city centre as well as to the airport. The building is a Nearly Zero-Energy Building (NZEB) with a BREEAM Excellent sustainability rating and an AAA Energy Performance Certificate (EPC) rating. The building offers significantly lower operating costs than the Luxembourg market average.
“With this bridge-to-exit financing for a prime mixed-use project carrying a BREEAM rating of ‘Excellent’, we were able to provide a credit facility at attractive conditions backed by a sustainable and future-proof asset as collateral, thereby taking optimal advantage of current market conditions for the benefit of our investors,” explained Florian Niebur, Investment Manager at Aukera Real Estate.
“The financing is enabling us to increase the value of this Green Core property asset in a difficult market environment while also permitting an optimally timed exit through a subsequent refinancing once the project is completed and stabilised,” added Kindy Fritsch, Managing Director at Connection Property Development S.A. “CONNECTION is set for completion by the end of the year as scheduled, and lease marketing is proceeding at full speed.”
