The Student Hotel (TSH) has secured €82m for its two new hotel projects in Paris and Toulouse through an innovative ESG financing structure from Crédit Agricole CIB. The funding combines the characteristics of a green loan with a sustainability-linked loan, which the French bank is applying to a structured credit line for the first time in the European real estate investment industry. Under the terms of the green loan, TSH is targeting the international BREEAM ‘Very Good’ rating for both buildings.
Lucas Rijckmans, Chief Corporate Services at TSH, said: “The Student Hotel and Crédit Agricole CIB have agreed on a pioneering green financing package for our development and refurbishment projects in Paris and Toulouse. The terms of this combination green loan mirror the targets of our ambitious sustainability strategy that will overlay the entire European TSH portfolio, which is set to triple in size over the next five years.”
The Paris development accounts for 58% of the TSH financing package, and the Toulouse refurbishment for the remaining 42%. The Amsterdam-based operator, developer and investor plans to operate more than 4,000 hotel and extended-stay rooms in France by 2022. The new financing also forms part of a €2bn accelerated pan-European investment programme by TSH that will increase the number of its hotels in operation across Europe from 13 to 38 over the next five years.
Nathalie Sarel, Head of Sustainable Banking at Crédit Agricole CIB, said: “Green finance is playing a growing role in guiding companies towards integrating ESG elements in their operations. This is particularly important for the real estate sector, which is a major source of the CO2 emissions that contribute to global climate change. With this ground-breaking green financing structure, The Student Hotel is showing its commitment to developing green assets and incorporating ESG targets, and is making a big step forward to address its environmental and social challenges.”
Amber Westerborg, Impact Manager at TSH, said: “TSH is committed to growing consciously and sustainably, and actively engages its students, guests, entrepreneurs and other tribes in the process. We believe that by doing so we can make the most positive impact. Our goal is to create innovative buildings and projects where individuals are transformed into a community of changemakers that will ultimately go out and change the world for good.”
