€18.1 million in development financing for a project in Rotterdam

Background

Bakkers|Hommen is developing several projects at Brainpark in Rotterdam. MEK Phase B consists of the development of three buildings with a total of 363 residential units and 2,629 m² of commercial space, located right next to Erasmus University and the Kralingse Zoom metro station.

The "Max Euwekwartier Phase 2B" zoning plan became final on January 30, 2025, and an application for an environmental permit has been submitted; this permit is expected to become final in the fourth quarter of 2026. To bring the development to a stage ready for construction, Bakkers|Hommen sought to refinance the existing development financing and, at the same time, increase it to cover the remaining development costs.

Asset Partners has prepared a comprehensive financing memorandum for this purpose and approached the market to solicit indicative financing proposals for the development project.

Ultimately, the financing was arranged through Rabobank, which is providing the requested facility of €18.1 million. The loan has a term of 18 months. A portion of the principal has been deposited into an escrow account; part of this amount will be released once the permit becomes irrevocable, and the remainder is available to cover financing and development costs.

The new financing structure aligns with the project’s development pace and gives Bakkers|Hommen the flexibility to complete the permitting process and prepare the sites for construction, with the intention of subsequently transitioning to construction financing.

Result

• Refinancing of the existing €10 million loan and increase of the facility to €18.1 million
• Financing structure involving a escrow account and a margin reduction linked to the environmental permit becoming irrevocable
• A collateral package tailored to the project and the client’s capital structure
• Groundwork laid for refinancing into construction financing after the environmental permit is granted