The consulting firm Capcora, specialized on real assets, arranged whole loan financing for FAKT AG to replace an existing acquisition financing for two educational buildings in Bergkamen and Recklinghausen. The medium-term financing was provided by an infrastructure debt fund based in London / Luxembourg.

The financing volume amounts to EUR 18 million, which corresponds to a loan-to-value (LTV, loan in relation to the property value) of around 60 percent. The financing with a term of five years was structured in the form of a securitized loan and benefits from an attractive interest rate.

"We are very happy that with Capcora we were able to secure another important financing component for two of our revitalization projects remaining in our portfolio. This is particularly noteworthy because it was not a standard property use and we were able to settle the financing on schedule even during the corona pandemic, "said Norbert Boddenberg, CFO of FAKT AG.

FAKT AG acquired the former miners' schools in August 2018, revitalized and improved the rental level of the properties which continue to be used for educational measures. The two almost identical buildings each have a usable area of approx. 16,000 m².

Since the real estate is social infrastructure, the financing was of particular interest to infrastructure lenders, one of whom has prevailed as part of a structured financing process carried out by the consulting firm Capcora. The transaction was legally supported by the law firm Fried, Frank, Harris, Shriver & Jacobson LLP.

"Institutionally placed whole loan financing has become increasingly important recently. We are pleased that we were able to significantly improve the cash flow base of FAKT's campus projects with the new financing structure and to bring our infrastructure financing expertise, "says Tobias Müller, Investment Director at Capcora and jointly responsible for the real estate sector.

About FAKT AG:
The FAKT group of companies focuses on the revitalization of larger properties in the Ruhr area for its own portfolio and selective project development for sales - the core sectors are real estate, selected municipal infrastructure and capital market issues as well as projects for environmentally friendly energy generation and efficient use of scarce resources. In Germany and on the international market, the FAKT Group operates with a professional network of established cooperation partners. The group of companies currently bundles 30 subsidiaries and project companies under one roof.

About Capcora:
Capcora is a consulting firm, specialized on real assets. Capcora procures equity, mezzanine and debt financing for energy and infrastructure projects, real estate, and medium-sized companies. The focus is especially on mezzanine financing for the recapitalization of tied-up liquidity in operating assets as well as for bridge financing of developments and construction measures in the area of renewable energies (photovoltaics, onshore wind) and real estate through alternative financing sources.

About Fried Frank:
Fried, Frank, Harris, Shriver & Jacobson LLP advises the world's leading corporations, investment funds and financial institutions on their most critical legal needs and business opportunities. The Firm's approximately 500 lawyers are based in North America and Europe with offices in
in New York, Washington D.C., London und Frankfurt.
The European offices have strong expertise in private equity, real estate, (real estate) finance, asset management, finance, dispute resolution, tax and mergers and acquisitions.