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Interest rate hedging profile for NREP
Case studies

Interest rate hedging profile for NREP

629 €629 million debt
55 Five year weighted average life
4 Four currencies
Background

NREP is a leading Nordic real estate investment firm focused on defensive value-add investment strategies in select segments of the Nordic market. NREP was established in 2005 and has since then raised 11 funds and built market leading operating platforms in modern logistics, self- storage, necessity driven retail, student housing and middle-income residential.

Total outstanding debt c. €629m drawn on a floating rate basis, denominated in DKK, EUR, NOK and SEK

The request was to:

  • Develop a hedging profile to increase to c. 5 year weighted average life
  • Illustrate pricing and hedging alternatives
  • Assist with the execution trade
Our Approach
  • JCRA worked closely together with NREP to identify the key features required for the hedging strategy across the logistics portfolio.
  • JCRA reviewed and analysed the loan documentation and business plan.
  • JCRA put together an Interest Rate Hedging Analysis Discussion report which included a detailed understanding of the choices available for NREP
  • JCRA challenged the lender to get a competitive price and lead the trading execution.
Benefits
  • JCRA provided a detailed understanding of the choices available for NREP, including the costs and benefits for each option to enable NREP to make an analytical hedging decision.
  • The JCRA report was a key document for the investment committee when determining the hedging strategy.
  • JCRA’s work achieved competitive trading terms for the new swaps.
 

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Contact us

If you need hedging or debt advice or would like to speak about how we could help your business, please get in touch.