– The German KfW Energy Efficiency Program will be providing the partial financing for two of the current refurbishment projects of alstria (symbol: AOX, ISIN: DE000A0LD2U1).
Extensive refurbishment measures are currently in progress at the properties at Solmsstr. 27-37 (Frankfurt am Main) and Rotebühlstr. 98-100 (Stuttgart). The aim of the refurbishments, which represent an investment of EUR 69 million in the two buildings, is not only to increase the quality of the assets, but also to significantly improve energy efficiency and thus reduce CO2 footprint.
alstria continues to pursue a strategy of modernizing its portfolio properties. “The most sustainable building is the one that is never built,” says Olivier Elamine, CEO of alstria. “Compared to new construction, refurbishments require significantly less resources and consequently the emission of GHG will be much lower. In this way, we make sustainable use of the existing buildings and create modern and energy-efficient assets for our tenants”.
For the first time, the modernization measures are being partially financed by the KfW Banking Group under the Energy Efficiency Program. This program is intended to finance measures aimed at saving energy and reducing carbon emissions in German commercial properties.
The loan has a total volume of EUR 21.2 million, an interest rate of 1% and an average maturity of around 3.5 years. As the repayment subsidy provided by KfW is EUR 4.2 million, the redemption amount will be reduced to EUR 17.0 million.
HypoVereinsbank is a long-standing partner of alstria and provides the KfW financing as its principal bank. “We are very pleased to support alstria also in the implementation of these two projects, thus contributing to the decarbonization of its portfolio. Sustainability is also increasingly becoming the focus of our financing activities,” says Dr. Christian Federspieler, Head of Real Estate Germany at HypoVereinsbank.
The refurbishments will be completed by the end of 2021 and substantial long-term leases have already been signed for both buildings.
