The Danish pension fund PKA has entered into a financing agreement with Gefion Group to facilitate the development of a 40,000 sqm project at Amager Strandvej, Copenhagen. The project includes the development of a commercial unit, townhouses and up to 300 residential units – the majority of which will be rental housing.
The financing agreement entails a total credit facility of DKK 865m, split into a construction financing facility of DKK 606m and a refinancing facility of DKK 259m, where the refinancing facility will be used to partly redeem the outstanding 1st and 2nd lien bonds issued in connection with Gefion Group’s acquisition of land. The financing agreement ensures the construction of the property development project in full.
This is the fourth transaction for construction financing that Carnegie has placed, following the construction financing of a real estate project for Arkitektgruppen, the construction financing of an apartment project in the South Harbour of Copenhagen for NREP and NPV, and the construction financing of real estate development projects for Carlsbergbyen.