Case study

Forward funding for Upfield's BREEAM-outstanding R&D building

February 12, 2024

A modern multi-story building with large windows and a rectangular shape. The building has a mix of glass and light brown materials on the facade. There are green accents at the entrance and flagpoles with green flags. In front of the building are green spaces with young trees and shrubs, and there is a small parking lot on the side. A person is walking on the left side of the image. The weather is sunny with an almost clear blue sky.

When investing in a new construction project, you naturally want to have control over the development process. Especially when working with forward funding: then you need to know exactly what financing percentage you can release. For this, a translation is required: which part of the realization corresponds to which term? This requires more than just knowledge in construction and installation techniques - you also need to have an eye for the commercial impact. If you have limited time, it is worth engaging an external partner. Willem Hoes from the asset management team of W. P. Carey also experienced this when they decided to finance Upfield's new Research and Development building.

An aerial view of an urban area with various buildings, roads, vehicles and greenery. The central building has several floors, glass facades and a green roof. The area is well designed with paved roads, footpaths, bicycle paths and lots of greenery. It gives an impression of an organized and pleasant urban environment.
An aerial photograph taken straight down and shows an urban environment. In the center of the photo is a large, modern building with a U-shaped structure and a flat roof partially covered with solar panels. The building appears to be several stories high.
An office building by daylight. The building has a rectangular shape and consists of several floors with large windows that make the building appear light and open. The facade is mainly glass with some vertical and horizontal metal elements that define the structure. A logo is visible on the building. The logo shows a green leaf symbol. To the left p the foreground you can see a single tree with green leaves and gives a natural touch to the urban environment. The landscaping around the building is minimalist, with a few shrubs and clear green lines. A person on a bicycle rides along the path in front of the building, indicating a bicycle-friendly environment. The sky is mostly clear with some light clouds, indicating good weather. Overall, the image gives an impression of a modern, environmentally conscious business location in an urban but green and friendly environment.
The exterior of a building with a glass facade behind which an interior is visible. On the facade is a large green logo with the text 'Upfield'. The reflection of trees and the sky can be seen in the glass, along with other buildings and structures. The building seems to pay attention to greenery and sustainability in an urban environment.
The back of a building with a formal architectural style, consisting of rectangular frames with glass and vertical blinds. The building has several floors and vertical bars that create a rhythmic pattern on the facade. In front of the building is a parking lot with young plants and shrubs in geometric patterns. The surrounding area is well maintained with clean paving. The photo was taken under sunny conditions and shows no people or vehicles.
Striking architectural features, such as vertical elements and metal railings. The photograph is taken against a clear blue sky, and the sun creates shadows that accentuate the linear pattern. The focus is on the architecture.
A close-up of a building. The building has a series of large, rectangular windows that appear to go from floor to ceiling. The windows have thin, vertical frames that divide the glass into smaller sections. Between the windows are vertical slats or panels that can serve as blinds, giving the building a striped appearance. The facade of the building is made of light materials, possibly metal or concrete, and it has an angular structure where the corner of the building is prominent. The sky in the background is mostly clear with some light clouds.
Single building with clean architecture, large windows, paneling and a green graphic element on one of the glass balconies. The building integrates green spaces into the design and exudes a contemporary, environmentally conscious look.
A building seen from a low vantage point, with the camera facing the sky. The building's architecture is characterized by a series of vertical lines formed by narrow, rectangular columns or slats that appear to function as shading or decorative elements. These structures are regularly spaced across the façade and provide a rhythmic visual pattern. Between the vertical elements, large glass windows are visible, showing the reflection of the blue sky and some white clouds.
A building with sleek architecture and large glass windows on a sunny day. The area is well maintained with paving, grassy areas and parking. There is also a bicycle-friendly environment with bike lanes and a cyclist on display.
A building with a glass facade and vertical metal bars in front of the windows. On the facade is a large logo with green leaves and a stylized bird or butterfly, along with the text 'Upfield'. In front of the building is a garden with young trees and shrubs, and there is a person riding a bicycle on what looks like a bike path. The mood of the image exudes permanence and modernity.
A building with the logo and name 'Upfield' on large, vertical flags. There is a person walking in front of the building, and the surrounding area is neatly laid out with a sidewalk and a street light. The building appears to be part of a life sciences complex.
A building with the name 'Upfield' in large white letters on a glass panel. The building has a neatly landscaped area with young trees and shrubs, and a person walking past the building. The atmosphere is clean, professional and modern.

Sustainable relationships

W. P. Carey does not believe in quick money, but in a sustainable future. That's why they like to build good relationships with their tenants, says Hoes. "I think it's important that organizations can get the most out of their building, and I also like to think along with them when they expand or adapt their business. Take the rising energy prices: we finance the installation of solar panels for some tenants and pass on the costs through the rent. As a result, they have lower net costs, and we have additional rental income. Win-win. This kind of long-term thinking characterizes us, and the development of Upfield's modern R&D building is exactly the type of development we like to invest in."

Green for everyone

Upfield produces plant-based food, and where better to do that than in Wageningen. When their R&D building in Rotterdam had to close, the choice for the campus of Wageningen University & Research (WUR) was quickly made. They designed the building themselves and wanted it - just like their products - to meet the most sustainable standards. From the kitchen to the lab, and from the testing area to the insect hotel in the outdoor space: everything is aligned with their green philosophy. This is beneficial for both parties, as Upfield is ensured a prime location in the coming years - and W. P. Carey benefits from stable rental income.

An interior of a building, possibly an office or public space. It is a spacious room with lots of natural light, wooden tables, round tables with green and black chairs, and a striking white spiral staircase in the center of the space. The atmosphere is calm and the decor has a minimalist color palette of white, gray and wood tones, complemented by greenery from plants.
An interior of what looks like a public space or part of a building with the text 'The Green Hub' in large, green letters. The interior is spacious and bright with wooden tables, benches and a striking white staircase. People can be seen on the balcony and on the first floor. The atmosphere is clean and inviting, with an emphasis on sustainability.
The interior of a building similar to an office or a public space such as a library or university building. It is a spacious, well-lit environment with high ceilings and a large window on the left side, letting in natural light.
An interior space that seems to function as a kind of canteen or lounge. The ceiling is covered with wooden slats that run horizontally and provide a warm feel. On the floor are large, square, light-colored tiles.
interior of a room with a focus on one piece of furniture. The main component is a long, curved wooden bar or counter with a smooth top surface and a wavy, layered wooden structure on the outside. In front of the bar are two stools with a minimalist design. They have a square seat and no backrest. The stools are made of metal and have a light taupe color.
A spacious kitchen with large windows that let in lots of natural light. At the front of the picture is a long white kitchen island with a smooth surface, on which there are four stools with wooden legs and gray seats. On the kitchen island, several cookbooks lie neatly side by side.
The interior of a building with a minimalist design. In the foreground is a large, rectangular planter with several green plants. The planter appears to be made of a dark material and sits on a light, plain floor. There is a white staircase with a metal handrail in the center of the image that leads to the upper floor. A person in a white shirt and dark pants is walking up the stairs.
A modern office interior with a shared kitchen, a person behind the faucet uses, a wooden bench, glass walls and a person moving through the space. The office has a stylish look with natural wood tones, green accents and lots of glass for an open and airy atmosphere.
An industrial environment, probably a food processing plant or one that works with liquids, given the presence of stainless steel tanks and pipelines. At least three people are visible, all wearing white lab coats, indicating an environment where hygiene is important. They are also wearing safety helmets and one of them is wearing a hairnet, further emphasizing the importance of hygiene. At the back of the room is a glass wall separating the production floor from another room, which looks like an office or control room, given the presence of desks and computer screens. Lighting in the factory is bright and evenly distributed across the ceiling. This setting suggests a focus on cleanliness, precision and control, which is typical of food production, pharmaceutical manufacturing or other industries with strict hygiene standards.

Insight and overview

Although they have signed a triple-net contract, all obligations lie with Upfield. However, this project is far from risk-free for W. P. Carey, says Hoes. If the construction stalls, the rental income is at risk. So, if there is even the slightest hiccup in the proverbial or physical cable, they want to respond immediately. "That's why we needed to monitor the entire construction process; from the first pole in the ground to the connection of a certified sprinkler system. Since we don't have enough manpower, I immediately thought of Martijn van Ee and Saskia Rijgersberg from CBRE, as we have worked together before."

Writing technical reports? Definitely useful, according to Willem. "And there are plenty of consultants who can do that. But Saskia and Martijn do more. Solid work starts with the paperwork: what are the agreements and what does the schedule look like? But also, how do you incorporate risks into the payment schedule? Think of leaks, but also process delays.

To answer such questions, you need to be able to look from different perspectives." During the construction phase, he had monthly consultations with Martijn. Later in the process, Saskia also got involved during the transition from the rough construction to the finishing phase. Willem: "Whether it's about the facade or climate installation, the technical advisors from CBRE seamlessly switch between regulations, knowledge of installations, and construction planning - and always prioritize our interests."

Peace of mind

The construction experienced some delays due to a shortage of building materials and a cold period, Willem remembers. "Saskia and Martijn then referred back to the contractual agreements and based on that, they created an adjusted payment schedule. Everything was done in good consultation with Upfield and the contractor because clear communication is our top priority. Even when Upfield was on the verge of moving in and the building did not yet fully comply with fire safety regulations, the technical team gracefully adapted. By zooming out and maintaining peace, they got everyone on board. They guided the final phase in such a way that all parties now view this BREEAM-outstanding R&D building as a joint achievement with a sense of fulfillment."

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