Dutch lender Rabobank has agreed to provide a €180 mln financial facility to the Amvest development fund consisting of a term loan, working capital and bank guarantee facilities.
The financing will be used to facilitate growth in the Dutch residential fund’s acquisition and development strategy, with flexible funding arrangements that allow for future acquisitions, developments and disposals, and utilises the facilities in a manner similar to a borrowing base structure uncommon in real estate.
Dennis van Vugt, CFO of Amvest, commented: ‘We launched the Amvest Development Fund in 2018 with the aim to create one single vehicle for our shareholders, investing in a revolving pipeline of development projects in various stages in the development cycle, from initial idea to completion. Traditional development financing solutions simply did not allow us to apply a stable target LTV ratio to this mixed portfolio of projects. Rabobank came up with an innovative structure that addresses this challenge and simultaneously allows us to tap into new opportunities in a very flexible manner.’
Guido Alberti, director Real Estate Finance & Construction at Rabobank, commented: 'Rabobank is very happy to provide this new committed financing arrangement replacing the earlier, uncommitted financing while providing for more flexibility in line with the needs and ambitions of the Amvest Development Fund.'
Simmons & Simmons advised Rabobank on the deal.