Swedish property firm Vasakronan AB has signed a SEK2.34bn ($264.5M) long-term loan agreement with Nordic Investment Bank (NIB) for the revamp and construction of green buildings in Stockholm and Gothenburg.
The ten-year maturity loan will be funded with the proceeds of NIB Environmental Bonds and will support the development of two new commercial properties
The Sergelhuset, in Stockholm, will be refurbished and transformed into office space, shops, a hotel and apartments with a gross floor area of 85,000 sq m. The project, estimated to cost around SEK2.9bn, is expected to commence in summer 2017 and be complete by the end of 2020.
The Platinan, estimated to cost SEK2.2bn, involves the replacement of an existing 18,000 sq m building with a new one with a gross floor area of 75,000 sq m. The new property will include office and residential space and a hotel.
Construction work is slated to begin in the first quarter of 2017 and be complete by June 2023.
Both projects are to receive LEED Platinum certification, according to NIB.
Henrik Normann, NIB president and CEO, said: “The projects fulfil NIB’s environmental mandate because they aim for the highest possible LEED certification. Platinum-certified buildings push real estate clients and suppliers towards sustainability through leading by example.”
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