Dorsett City Hotel received a refinancing plan after Aareal Bank announced a green finance deal.
The loan was received by a subsidiary of Cerberus Capital Management, LP and Highgate received a mortgage in the amount of over double digits in millions of pounds sterling.
The senior loan for a period of five years is guaranteed by real estate meeting sustainability criteria, which the borrower has undertaken to maintain throughout the duration of the loan. This is the second green loan granted by Aareal Bank in accordance with its green financing framework.
The Dorsett City Hotel opened in February 2018 in Aldgate, spanning 13 floors and 267 rooms.
Cerberus is a global leader in alternative investing with more than $ 55 billion (£ 40 million) in assets under complementary credit, private equity and real estate strategies.
Highgate is a fully integrated real estate investment company with a primary focus on the hospitality industry, with a current portfolio that includes over 350 properties or 65,000 hotel rooms owned, managed, managed or under development in United States, Europe and 15 Caribbean and Latin American countries.
Bird and Bird advised Aareal Bank on legal matters and CBRE performed the assessment.
Christof Winkelmann, Aareal Bank Board Member, said: “At Aareal Bank, we believe that the Corona pandemic has contributed to an increased awareness of sustainable management. I therefore expect more and more sectors of the economy to systematically integrate sustainability requirements into their business models.
“The financial sector has a key role to play in this process. Therefore, we intend to steadily increase the share of green buildings in our loan portfolio and we are delighted to be able to accompany Cerberus and Highgate on the path to sustainable investing.