Schroders Capital provides £23m loan for Danish resi project

Schroders Capital has closed a £23.3 mln (€27.2 mln) senior construction loan to fund the development of 133 townhouses in Denmark's Triangle Region.

Copenhagen, Denmark - Schroders Capital

This project is being undertaken by an experienced local developer with a proven track record.
The loan, co-invested equally with a fund managed by Kinnerton Credit Management A/S, represents the second commercial real estate (CRE) loan in Denmark that Kinnerton has sourced for Schroders Capital's pan-European Real Estate Debt strategies.
All townhouses are designed to achieve DGNB Gold certification for sustainability, and the financing is categorised as Article 8 under the EU Sustainable Finance Disclosure Regulation. The Triangle Region, encompassing several municipalities including Billund and Kolding, is a dynamic area experiencing population growth and high demand for modern, sustainable housing.
This transaction underscores Schroders Capital's goal to expand its European CRE debt lending activities in the Nordics, Germany, and the Netherlands, regions where it already has a strong real estate presence. This addition further enhances the PDCA team's global CRE debt portfolio, which now exceeds $2.4 billion in CRE loans.
Daniel Younis, head of European Real Estate Debt Investments, Schroders Capital said: “With a lack of financing from banks coupled with a significant demand for affordable homes, alternative lenders are able to plug the gap. There is a clear pipeline of multi-family opportunities in Denmark in particular, providing access to areas with strong employment growth, all backed by solid fundamentals. The transaction exemplifies Schroders Capital’s approach of partnering with best-in-class borrowers and generating attractive risk-adjusted returns secured against high-quality, sustainable properties.”