Abrdn’s AIPUT fund (Airport Industrial Property Unit Trust) has announced the completion of a new £350 mln (€400 mln) senior secured sustainability-linked credit facility to fund the growth of its industrial portfolio.
The facility consists of a split term loan and revolving credit facility structure, with an initial committed term of five years.
‘The loan will provide AIPUT with quick and flexible access to debt capital, in addition to existing capital sources, to finance its acquisition and renovation programme over the next five years,’ the borrower said in a statement.
A number of opportunities to accelerate the fund’s capital growth and resilience are to be fast-tracked by expanding its portfolio of high-quality industrial real assets into existing and new major gateway locations with growing local populations, consumer spend and high barriers to entry; each one underpinned by exceptional and quick multi-modal transport connectivity covering both domestic and international markets.
Wells Fargo is acting as lead arranger, underwriter and agent for this Facility.
Commenting on the deal, Aiput’s fund manager, Nick Smith, said: ‘This strategic credit facility, combined with abrdn’s market leading investment expertise and operating platform, provides us with a wealth of financing options to execute our responsible investment strategy at scale and pace, forming a key pathway for AIPUT to become a net zero carbon business by 2040.’
Nick Stoneham, head of Real Assets Debt Finance at abrdn, commented: ‘Wells Fargo were able to offer a very attractive and efficient solution through a full initial underwrite of this large facility at competitive pricing, which right-sizes AIPUT’s debt provision for the coming five years in-line with its current debt strategy.’
Nicola Free, head of Wells Fargo Commercial Real Estate in EMEA, added: ‘We are delighted to have completed this sustainability linked financing with AIPUT by acting as the mandated lead arranger, underwriter and agent for this facility, which will support AIPUT’s commitment to further improve its green credentials and focus on improving its EPC rating, achieve BREEAM certification and reduce carbon intensity.’
Aiput, an industry-leading specialist investor in major transport and freight-related industrial real estate, holds a portfolio of 23 properties located at four of the major gateway airport network markets in London and the South East.
The overall value of the fund currently stands at over £1.0 bn.