Stoneweg European REIT has updated its green financing framework to reflect its new sustainability strategy, following a change in the ownership of its sponsor and substantial unitholder.
Stoneweg European REIT changed its name from Cromwell European REIT on Jan 2. In a Jan 15 announcement, the manager of the REIT says its new green financing framework is based on three “leading standards” in green finance, namely the Green Bond Principles (GBP) as administered by the International Capital Market Association (ICMA); the Green Loan Principles (GLP) as administered by the Loan Market Association (CMA); and the Green Bond Standards (GBS) as administered by the Asean Capital Markets Forum (ACMF).
ING Bank N.V., Singapore (ING) acted as the sole ESG structuring adviser. As part of its role, ING provided expertise in updating Stoneweg European REIT’s green financing framework.
The eligibility criteria outlined in Stoneweg European REIT's green financing framework for all project categories have been “favourably evaluated” by ISS-Corporate (ISS), which provides independent second-party opinions.
The eligible project categories — green buildings, renewable energy and energy efficiency — were assessed as making a positive contribution to the United Nations’ Sustainable Development Goals (SDGs), according to the REIT manager.
Stoneweg European REIT received a four-star rating in the latest GRESB assessment, which assesses the sustainability features of standing real estate investments.
See also: Cromwell European REIT to be renamed Stoneweg European REIT following sponsor change
The REIT has also maintained “A” and “AA” MSCI ESG ratings since 2022, while the European Public Real Estate Association (EPRA) accorded Sustainability Best Practices Recommendations (sBPR) Gold Award to Stoneweg European REIT for the second year running in mid-2024.
ESG accolades provide greater access to capital, says Shane Hagan, chief financial officer of the REIT’s manager. In the past two years, Stoneweg European REIT has completed more than EUR600 million ($845.04 million) in sustainability-linked loan facilities, which helped lower cost of debt as the REIT achieved ESG KPIs.
Hagan adds: “Debt and equity capital partners today seek increasingly detailed environmental data, tangible performance commentary and comprehensive quantitative ESG disclosures. We are putting in a lot of effort to meet this demand.”
See also: S&P Global Ratings assigns ‘BBB-‘ long-term issuer credit rating to Stoneweg European REIT
Aside from sustainability, S&P Global Ratings assigned Stoneweg European REIT an investment grade “BBB-“ long-term issuer credit rating with “stable outlook” last week.
As at the end of 2024, Stoneweg European REIT had 105 assets in 10 European countries, with the majority of them in European gateway cities. The REIT’s logistics and industrial properties account for 55% of its portfolio, while office buildings make up 43% of the portfolio as of Dec 31, 2024.
Stoneweg Icona Capital Platform, with its subsidiaries and associates, is the sponsor and 28% substantial unitholder of Stoneweg European REIT. The venture by real estate investment group Stoneweg and alternative investment group Icona Capital currently has EUR9 billion of assets under management, and employs over 300 professionals and is present in 15 European countries, the US and Singapore.
Units in Stoneweg European REIT closed flat at $2.20, or EUR1.57, on Jan 14.
