Acquisition and development financing for former tobacco factory in Groningen

Background

For the purchase and redevelopment of the Niemeyer site in Groningen, MWPO was looking for a financing partner that recognized both the potential and the strategic importance of this project for the city of Groningen.

The former Niemeyer factory, including the surrounding lots, is being redeveloped into a multifunctional campus and AI facility: a high-quality mix of office, hospitality, cultural, sports, and event spaces, with a strong emphasis on preserving its historical value. The total size of the project is approximately 32,000 m² of gross floor area.

Asset Partners served as advisor and financing arranger and was responsible for structuring and arranging a customized financing solution. This financing solution was carefully tailored to the phased development strategy, the expected leasing progress, and the project’s sustainability goals, with the objective of achieving Energy Label A.

Following a competitive bidding 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 customized financing structure.

Outcome

• Bidding process involving specialized domestic and international financiers
• Financing terms tailored to the phasing of the acquisition and redevelopment
• An optimized balance between equity and debt, taking into account future changes in value
• Phased Contribution of Equity Capital
• Financing that “aligns” with rental milestones