Ivanhoé Cambridge in first 'green CMBS' deal on New York office tower

Ivanhoé Cambridge and Callahan Capital Partners have replaced part of the debt on a New York office building with the first “green bond” commercial mortgage-backed securitisation (CMBS), arranged by Natixis.

Ivanhoé Cambridge, the real estate arm of Caisse de dépôt et placement du Québec, and private equity firm Callahan, have issued a $72m (€63m) green-specific tranche of CMBS to refinance part of a $358m fixed-rate, first-mortgage loan.

This loan had been provided by Natixis, the asset management and financial services arm of French bank Groupe BPCE, to Ivanhoé Cambridge for its acquisition of 85 Broad Street in Manhattan earlier this summer.

Nathalie Palladitcheff, executive vice president and chief financial officer at Ivanhoé Cambridge, said: “This financing is a great example of how like-minded global players are able to work together to bring new green initiatives to the market, which is right in line with Ivanhoé Cambridge’s commitment towards sustainability.”

The Manhattan building gained high-level environmental certification in January this year, in the form of a Leadership in Energy and Environmental Design (LEED) Platinum Certificate for the operation and maintenance of an existing building. Platinum is the highest rating level in the LEED system. 

The green tranche received strong interest from US and foreign investors, and was oversubscribed, Natixis said.

Natixis described the financing as “a first step in the CMBS market which will contribute to diversify the green investment opportunities for investors, while maintaining the high green and transparency standards that Green Bond Principles are trying to safeguard”.

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