The Public Sector Pension Investment Board is closing the largest private construction loan in Washington, D.C. history alongside Hoffman-Madison Waterfront.
The first phase of the wharf, a waterfront neighbourhood that includes residential, hotel, office, retail real estate and public spaces like waterfront parks and piers, opened in 2017. This latest loan is for the second phase of its development.
The Goldman Sachs Group Inc. led the non-recourse transaction with syndicate members Starwood Capital Group, Mack Real Estate Group and Pentagon Federal Credit Union.
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“With Goldman Sachs, we’re setting a new high bar for project financing in Washington,” said Kristopher Wojtecki, managing director of real estate investments at PSP Investments, in a press release. “We are now in an even stronger position to realize the full potential of Washington, D.C.’s waterfront.”
In other investment news, the Caisse de depôt et placement du Québec is involved in a proposal to make travel in Europe more sustainable.
The management of Patina Rail, the Société Nationale des Chemins de Fer français and the Société Nationale des Chemins de Fer Belges, presented a new Green Speed project to their boards. Patina Rail is owned by a consortium comprised of the Caisse and funds managed or advised by Hermes Infrastructure.
The Green Speed project is proposing to combine the cross-Channel Eurostar and the Franco-Belgian Thalys to create the foundation for a sustainable European high-speed rail travel company.
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Combining the two companies’ resources would increase economic efficiency and enhance their services, noted a press release from the Caisse. “The challenge of climate change and Europe’s growing demand for eco-responsible and sustainable travel presents a great opportunity for both companies in terms of development.”
“The creation of this major public transport platform would mark a milestone in European sustainable mobility,” said Emmanuel Jaclot, executive vice-president and head of infrastructure at the Caisse. “As part of our global infrastructure portfolio, we are very proud to continue our longstanding partnership with SNCF, to support the development of our portfolio company Eurostar and to participate in shaping the growth of environmentally responsible modes of transport across Europe.”
Once the project’s parameters are better defined, the project will be subject to approval by the boards and consultation with the representative bodies of employees, as well as clearance from the European Commission.