Clarion Partners Europe, a leading real estate investment fund manager specialising in European logistics and industrial properties, has partnered with NatWest to secure a £200 million Net Asset Value (NAV) Line facility for one of its co-mingled funds. This fund reports under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), marking the first collaboration between the two organisations.
This NAV facility is also a landmark transaction, as it includes green loan provisions aligned with the Loan Market Association’s (LMA) Green Loan Principles. This is the first such agreement between NatWest and Clarion Partners Europe, setting a precedent for green financing in real estate.
The funds will support a range of sustainable initiatives, including refinancing existing properties, implementing green capital expenditure (capex) programmes, and acquiring assets that either meet or aim to achieve specific building energy certifications.
Florina Capraru, Acquisitions Director at Clarion Partners Europe, commented:
“Integrating green loan provisions into the NAV facility is a natural progression in our sustainability and value creation strategy. It aligns with our mission to future-proof our portfolio of mission-critical assets. NatWest has been an outstanding partner, demonstrating a deep understanding of the decarbonisation challenges facing the real estate sector. Their alignment with our sustainability ethos reinforces the idea that sustainability acts as both a risk mitigant and a driver of value.”
Dan Kumagai, Head of Asset-Backed Funds Financing at NatWest, added:
“This innovative green structure is a significant development for the NAV line product. By supporting Clarion Partners Europe, we hope to encourage other leading investors to take pivotal roles in decarbonisation and broader responsible investment.”
Rahel Haque, Climate & ESG Capital Markets Lead for Private Finance at NatWest, shared her thoughts:
“We are thrilled to have supported Clarion Partners Europe with their inaugural Green NAV facility. This funding will enable them to acquire additional logistics assets and enhance energy efficiency across their portfolio. We look forward to deepening our partnership as we work together towards decarbonising the built environment.”
This collaboration not only strengthens the relationship between NatWest and Clarion Partners Europe but also underscores their shared commitment to sustainability and responsible investment in real estate.
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