Acquisition and development financing for a former tobacco factory in Groningen

Background

For the acquisition and redevelopment of the Niemeyer site in Groningen, MWPO sought a financing partner that recognized both the project's potential and its strategic importance to the city of Groningen.

The former Niemeyer factory, including the surrounding parcels, is being redeveloped into a multifunctional campus and AI factory: a high-quality combination of office, hospitality, cultural, sports and event uses, with a strong emphasis on preserving its historic character. The project comprises approximately 32,000 m² of rentable floor area.

Asset Partners acted as advisor and financing arranger and was responsible for structuring and arranging a tailored financing solution. This financing solution was carefully aligned with the phased development strategy, anticipated leasing progress and the project's sustainability objectives, with the goal of achieving an A energy rating.

Following a competitive tender process, Rabobank was selected as the financing partner, in part because of its ability to translate MWPO's ambitions and requirements into a flexible, future-proof and tailored financing structure.

Result

• Tender process involving specialized domestic and international lenders
• Financing terms aligned with the phasing of the acquisition and redevelopment
• Optimized balance between equity and debt, taking future value appreciation into account
• Phased equity contribution
• Financing that advances in step with leasing milestones