We have advised Rabobank on the circa €180m Facilities Agreement with the Amvest Development Fund, consisting of term loan, working capital and bank guarantee facilities.
The Amvest Development Fund is one of the leading property developers in the Dutch residential market and has extensive experience with integrated area development and complex co-development projects.
The financing will be used to facilitate growth in the fund’s acquisition and development strategy, with flexible funding arrangements that allow for future acquisitions, developments and disposals, and utilises the facilities in a manner similar to a borrowing base structure uncommon in real estate.
Dennis van Vugt, CFO of Amvest, commented: “We launched the Amvest Development Fund in 2018 with the aim to create one single vehicle for our shareholders, investing in a revolving pipeline of development projects in various stages in the development cycle, from initial idea to completion. Traditional development financing solutions simply did not allow us to apply a stable target LTV ratio to this mixed portfolio of projects. Rabobank came up with an innovative structure that addresses this challenge and simultaneously allows us to tap into new opportunities in a very flexible manner.”
Guido Alberti, Director Real Estate Finance & Construction at Rabobank, commented: “Rabobank is very happy to provide this new committed financing arrangement replacing the earlier, uncommitted financing while providing for more flexibility in line with the needs and ambitions of the Amvest Development Fund.”
Jan-Joost van Rijsbergen, finance partner at Simmons & Simmons, commented: “We are pleased to have been involved in this important transaction for the Amvest Development Fund, particularly given our earlier involvement in the financing of the Amvest Residential Core Fund. The financing structure for the Amvest Development Fund is a practical and pragmatic reflection of Amvest’s growth ambition, current market conditions and Rabobank’s willingness to accommodate Amvest’s needs within the framework of a tailor-made financing agreement.”
The Simmons & Simmons team was led by real estate finance partner Jan-Joost van Rijsbergen, who was assisted by associates Luke Benincasa and Emrecan Karacaoglu.
