Avara Completes a Significant Refinancing

Avara’s real estate private equity fund, Avara Residential Fund II, has entered into a financing agreement under which 75% of the fund’s senior debt was refinanced. The refinancing was provided by a bank syndicate consisting of Danske Bank A/S, Nordea Bank Abp and Aktia Bank Plc. Danske Bank A/S acted as the facility agent, and Avara’s legal advisor was Castrén & Snellman Attorneys Ltd.

At the same time, a separate financing arrangement was concluded with S-Bank, covering the remaining 25% of the fund’s senior debt. The total value of the refinancing was approximately EUR 110 million.
 
The portfolio of Avara Residential Fund II comprises 20 wholly and partly owned assets.

Financing markets have been developing positively for some time, providing the fund with an excellent opportunity to carry out the refinancing. Successful timing in a favourable market environment brings significant benefits to the fund, says Harri Retkin, partner and CIO of Avara.

Co‑operation with the financing banks has been excellent, and the new loan terms will be reflected in the fund through lower financing costs going forward, adds Arttu Ekqvist, partner of Avara and CEO of Avara Rahastot.

The assets included in the refinancing demonstrate strong energy efficiency, approximately 80% of the loan amount qualifies as green financing, says Teemu Putkinen, portfolio manager of Avara.

For more information

Arttu Ekqvist

Partner, Avara Ltd. & CEO, Avara Rahastot Ltd. / arttu.ekqvist@avara.fi / tel. +358 50 566 5300

Harri Retkin

Partner & CIO, Avara Ltd. / harri.retkin@avara.fi / tel. +358 40 704 6014

Avara is Finland's leading residential real estate investment and asset management company, with approximately EUR 1.2 billion of residential real estate assets under management. Avara acts as a respected, reliable and responsible strategic partner for investors investing in residential real estate in Finland.