Boreal IM Secures €170 Million Debt Facility From Aareal Bank

Boreal IM, the pan-European real estate investment manager, has secured a €170mn cross-border debt facility from Aareal Bank to refinance seven logistics assets in France and Germany.

The 309,000 sqm portfolio includes six standing assets and a development plot, which were acquired between 2022 and 2024 as part of Boreal’s joint venture (JV) with Ontario Teachers’ Pension Plan. Tenants include a range of international manufacturers, distributors and 3PLs.

The accordion facility, which includes an additional €130m of uncommitted funds to finance future assets, has been provided as green financing in recognition of the JV’s brown-to-green business plan for the portfolio. BREEAM Very Good is being targeted for each asset, with sustainability-led capex, refurbishment and development programmes either underway or completed across the portfolio.

The loan is Boreal’s largest to date, with the JV also having facilities in place with five other blue-chip European lenders

Ontario Teachers’ partnered with Boreal IM in 2022 with the aim of assembling a diverse pan-European logistics portfolio. The JV’s portfolio now stands at 1.2 million sqm and €1.6 billion AUM across 45 assets in the UK, Germany, France, Netherlands, Italy and Spain.

Peter Bingel, Partner and CFO, Boreal IM, commented: “Securing a facility of this size with a partner like Aareal Bank speaks to the quality of our growing portfolio and confidence in our strategy, where we are capitalising on the logistics sector’s strong structural tailwinds, defensive qualities and opportunity for long-term value creation through improvement of the sustainability profile of the assets.

It also speaks to confidence from capital markets in European logistics, where lenders are favourably weighted towards the sector and there is liquidity in the core-plus and value-add space.”