7 July 2017
New York
Reporter: Mark Dugdale

Ivanhoé Cambridge refinances NY office tower with ‘green bond’

Ivanhoé Cambridge and Callahan Capital Properties have refinanced their New York office tower with Natixis’s first ever ‘green bond’.

The $72 million green-specific tranche commercial mortgage-backed securitisation (CMBS) was issued to refinance part of a $358.6 million fixed-rate, first mortgage loan provided by Natixis to Ivanhoé Cambridge for the acquisition of 85 Broad Street in New York.

Ivanhoé Cambridge bought the property in conjunction with Callahan Capital Properties earlier this year for approximately $650 million.

The office tower boasts a Leadership in Energy and Environmental Design (LEED) Platinum Certificate for Existing Buildings: Operation & Maintenance, and received a positive opinion from a rating agency in terms of its sustainability quality.

The green tranche CMBS received strong interest from the major green investors both in the US and overseas and was oversubscribed, according to Natixis.

Benjamin Sirgue, head of Natixis Global Finance Americas, said, “With nearly $20 billion of loans securitised since 1999, Natixis is a proven leader in the CMBS market. Natixis endeavours to bring real assets to investors and is pleased to bring to the CMBS market the opportunity to invest in recognised sustainable investments.”

Nathalie Palladitcheff, CFO at Ivanhoé Cambridge, added: “This financing is a great example of how like-minded global players are able to work together to bring new green initiatives to the market, which is right in line with Ivanhoé Cambridge’s commitment towards sustainability.”

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