Redevco secures €67m green loan for German logistics hub

European real estate manager Redevco has finalized its second loan investment this year, following its initial €56.8 mln investment earlier this year, which marked its entry into real estate lending.

Frankfurt logistics scheme

The €67 mln "Green Loan" will be used to support the acquisition and development of two sustainable, Class A logistics facilities in Frankfurt and Karlsruhe, Germany.
These projects, a joint venture between Invesco Real Estate and Propel Industrial, will span 63,000 m2 and are designed to achieve DGNB Platinum certification and EPC A certification. They will feature EV charging stations, solar panels, rainwater harvesting, LED lighting, and smart metering systems.
With this deal, Redevco's total real estate debt investments since launching the business earlier this year now exceed €120 mln, highlighting the rapid growth of its debt financing operations. 
The logistics hubs are strategically located in the Rhine-Main and Rhine-Neckar regions, two of Germany’s most established logistics hubs, benefiting from direct motorway access and proximity to Frankfurt airport, Europe’s largest cargo hub.
Richard Craddock, head of Real Estate Debt at Redevco, commented: “Our real estate debt strategy is building momentum, and this second investment underlines the breadth of our sector and geographic coverage whilst continuing our thematic focus on transitional assets. We are delighted to be supporting Invesco & Propel in a sector and market where we have high conviction."
Manolito van Ardenne, CFO at Redevco, added: “This transaction further underlines our strategy of supporting the delivery of best-in-market, future-aligned schemes. We look forward to continuing to work with like-minded partners who share our ambition to channel capital into projects that generate long-term value for investors.”
Armen Gevorkian, managing partner at Propel, commented: “This facility provides a customised financing solution to help deliver two prime, modern logistics assets in key German markets. Working with Redevco’s debt platform was a natural fit given our shared focus on value creation and sustainability.”
Redevco established its Real Estate Debt platform this year to address the increasing need for financing in both transitional properties and new, high-performing developments. The platform focuses on deploying capital from its balance sheet and co-investment partners into various loan types (senior, whole, and mezzanine) across major European markets and asset classes, including funding for acquisitions, capital expenditures, and development. These loans are typically structured as "Green Loans."