Azora raises €636M to finance its affordable residential rental platform

Azora raises €636M to finance its affordable residential rental platform

Azora has reached an agreement with a number of banks and insurers, including Natixis CIB, Banco Santander, Crédit Agricole, ING, Deutsche Bank and Banco Pichincha España, to refinance Nestar, its affordable residential rental platform. The refinancing, amounting to 636 million euros, is structured through a syndicated mortgage loan.

The loan has a maturity of five years and its rate is linked to the 3-month Euribor plus a spread of 175 basis points. Principal repayment will be made in a single payment on the maturity date, and interest will be paid quarterly. To ensure financial stability, hedging instruments have been included to protect against possible increases in interest rates over the stipulated period.

In this operation, Banque Natixis CIB played several roles, including that of Agent and Sole Global Coordinator. It also acted as Joint Bookrunner alongside Crèdit Agricole. This financing agreement also includes a green loan, aimed at financing acquisitions that meet ESG criteria. In this respect, both Natixis CIB and Crèdit Agricole have been appointed as Green Loan Co-Coordinators.

Thanks to this financing, Nestar will be able to extend debt maturities by 5 years and implement a comprehensive improvement plan for its housing portfolio. This plan involves significant investment in the repositioning of its existing properties and the acquisition of new sustainable and energy efficient assets.

Javier Rodríguez Heredia, Managing Partner of Azora's Real Estate Area, says: "With the creation of Nestar we wanted to adapt to the times and refound our affordable rental management platform, increasing the services we offer to our tenants, as well as expanding and modernising the catalogue of homes, providing them with higher levels of quality and new designs. Thanks to this agreement, in addition to extending debt maturities by 5 years, we will now have an additional €42.3m direct financing facility in ESG projects for energy efficiency improvements and asset upgrades that will have a direct impact on our customers.

Concha Osácar, founding partner of Azora, highlights the importance of this agreement, mentioning that it allows to ensure the financial stability of the company and to continue with the strategic plan of its platform.

Nestar, under Azora's management, has made a difference in the real estate market by being the leading private creator of affordable rental housing in Spain. The company has developed more than 8,600 homes in the country, offering housing solutions to more than 40,000 families. Its focus is on the well-being of its tenants and the sustainability of the planet, always seeking to offer quality housing at affordable prices and contribute to the creation of sustainable communities.

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