CBRE acted as a Debt Advisor for Aberdeen European Residential Opportunities Fund (AEROF). The fund’s investment objective is to invest in commercial buildings located in the major cities of the European Economic Area that can be transformed into higher value residential uses. Over 60% of the assets of Aberdeen European Residential Opportunities Fund are situated in the Nordic countries. AEROF will issue a senior unsecured bond of EUR 75 million with a tenor of 3 years and a fixed annual coupon of 5.25% on 5 February, 2021. The bond was arranged by Pareto.
Christian Schjødt-Eriksen, Senior Fund Manager: “We are delighted to see Nordic bond investors’ firm interest in our residential opportunities fund. We are also proud to be among the first Pan-European real estate funds to issue a Nordic senior unsecured bond issue. Our 15 residential development projects will be finished by 2023 in Sweden, Denmark, Finland, Germany and the United Kingdom with end-uses varying from micro-living and long-term rental to senior living and condominiums.”
Anne Laukia, Director Debt & Structured Finance, CBRE said: “Nordic bond markets were able to offer a unique debt financing solution for AEROF. The advantage of a fund-level senior unsecured bond issue is flexibility in the use of proceeds. There is currently no such instrument available in the bank lending market. AEROF’s strong presence in the Nordics made it suitable issuer for Nordic bond market which is offering unsecured debt financing also for unrated issuers. Congratulations, Team AEROF! Pleased to work with you!”
