FRED Developers’ Ambitious Transformation of Kijkduin with Sustainable Capital Group
Discover how FRED Developers (FRED), an Amsterdam-based real estate developer focused on innovative and sustainable projects, partnered with Sustainable Capital Group (SCG) and NIBC to secure a combined €77.5 million financing for their mixed-use area redevelopment project (Nieuw Kijkduin) near The Hague. This case study highlights their journey from development financing to refinancing, emphasising their commitment to sustainability.
About FRED Developers
FRED is a leading player in the Amsterdam real estate market, focusing on mixed-use developments in the Netherlands. They are known for delivering sustainable, innovative, high-quality, and community-centric projects.
The Goal: Reviving an Entire Coastal Town
Project ‘Nieuw Kijkduin’ is the transformation of an entire coastal town near The Hague. Once a vibrant family seaside resort, the area fell into disrepair over time. FRED has taken on the challenge of restoring its former glory. The project consists of 7 uniquely designed residential towers which also feature retail, hospitality, and a parking garage. Phase 1 was completed and became operational in July 2021, with Phase 2 following in late 2023. Situated between two “Natura-2000” areas, the development is highly focused on sustainability, achieving a BREEAM Excellent rating.
Scope of Work: Sustainable Capital Group’s Role
Phase 1: Development Financing
SCG was mandated as the exclusive financial advisor to arrange development financing at attractive and flexible terms for the construction of retail spaces in Phase 2 of Nieuw Kijkduin.
- Financing Strategy: SCG developed a comprehensive financing strategy tailored to FRED’s unique needs and growth objectives.
- Marketing Materials: SCG created detailed and concise marketing materials (Teaser and Information Memorandum) to showcase the potential of the projects from a financial and sustainability perspective.
- Investor Outreach: SCG pitched the financing opportunity to several potential lenders and negotiated favourable terms to secure the necessary financing.
- Transaction Management: Throughout the process, SCG provided expert transaction management, participating in negotiations and leading the closing of the transaction.
Outcome: Successfully closing a €25 million senior loan facility from NIBC for FRED during a tricky post-pandemic market, enabling the construction of the retail areas in Phase 2 of Nieuw Kijkduin.
Phase 2: Refinancing
SCG focused on securing refinancing for both parts of the project, ensuring continuous financial support and stability.
- Financing Strategy: SCG developed a comprehensive financing strategy tailored to FRED’s unique needs and growth objectives.
- Marketing Materials: SCG created detailed and concise marketing materials (Teaser and Information Memorandum) to showcase the potential of the projects from a financial and sustainability perspective.
- Investor Outreach: SCG pitched the financing opportunity to several potential lenders and negotiated favourable terms to secure the necessary financing.
- Transaction Management: Throughout the process, SCG provided expert transaction management, participating in negotiations and leading the closing of the transaction.
Outcome: Successfully closing a €52.5 million senior loan facility from NIBC for FRED. The initial drawdown of €20 million was used to refinance the construction loan for Phase 1. The remaining €32.5 million, locked in advance at favourable terms, was designated for refinancing the construction loan for Phase 2 upon completion. Due to the project’s high ESG credentials, FRED benefited from a green loan discount on the interest margin.
What the client says about us
“We are grateful for the expert guidance and support provided by Sustainable Capital Group throughout the Nieuw Kijkduin project. This transformative development at Kijkduin beach, encompassing luxury flats, commercial spaces, and a vibrant mix of shops and catering establishments, required a comprehensive approach to financing. Sustainable Capital Group’s understanding of the complexities involved, combined with their commitment to sustainable development, was invaluable in securing the necessary funding. Their close collaboration with our team and their coordination with NIBC Bank ensured a smooth and efficient financing process.”
– Robbert Geel, COO at FRED Developers
“Together with FRED Developers and Sustainable Capital Group, we structured a tailored financing solution that met the unique needs of FRED Developers and this ambitious project Nieuw Kijkduin. The strategic approach and problem-solving skills of all parties involved were instrumental in achieving the financial structuring that aligns with our bank’s commitment to supporting sustainable and innovative projects.”
– Hein van der Post, Executive Director – Commercial Real Estate at NIBC
Conclusion
Despite the challenging post-pandemic market conditions, SCG successfully secured significant financing for FRED’s transformative and sustainable projects in Nieuw Kijkduin. Through strategic financial planning and unwavering commitment to sustainability, FRED continues to lead in creating high-quality, inclusive, and environmentally friendly urban spaces.
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