News & Analysis

In brief: Azora secures €640m financing for affordable housing business

The package will be used to make upgrades across the 8,600-unit portfolio and includes a €40m green loan.

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Spanish fund manager Azora has agreed a €640 million financing package for its affordable housing business, Nestar, according to a statement. Some points to note for NPM readers:

  • Nestar manages Spain’s largest portfolio of affordable rental housing, comprising 8,600 homes. The new capital will primarily be used for an “ambitious upgrade programme” targeting existing assets.
  • The package includes a €40 million green loan, which will be used to fund the purchase of energy efficient homes.
  • The lending consortium comprised Natixis Corporate & Investment Banking, Banco Santander, Crèdit Agricole, ING, Deutsche Bank and Banco Pichincha España.
  • The financing agreement has a maturity of five years and is benchmarked to three-month Euribor plus a spread of 175 basis points.

Azora also has a climate solutions private equity strategy, which launched with a €250 million target earlier this year.