Lendlease REIT secures $860m sustainability-linked loan
The loan is the biggest amongst REITs in Asia.
Lendlease Global Commercial REIT secured its first sustainability-linked loan from Citi, DBS, and OCBC. The $860m unsecured loan is the largest amongst Asia-Pacific REITs to date.
Loan proceeds will fund the acquisition of Jem, an integrated office and retail development, and for general corporate and working capital purposes.
The REIT follows a net-zero investment roadmap to drive true sustainability via various pathways. These include but are not limited to implementing energy efficiency initiatives to maintain top performance in green building ratings, increasing the use of renewable energy by 2030, trialling alternative fuels and phasing out fossil fuel for backup generators on assets, developing and piloting the next generation of green leases for tenants, and educating and partnering with tenants to reduce emissions.
Lendlease REIT Manager CEO Kelvin Chow said, "We are delighted to set a new industry benchmark and push for greater sustainability performance with our inaugural sustainability-linked loan, made possible with the support of our partners, Citi, DBS and OCBC. We have been steadily elevating the sustainability performance of the REIT's portfolio in Singapore and this injection of capital reflects our commitment to our decarbonisation roadmap that will deliver long-term sustainable growth and value for the built environment, our assets and stakeholders."
Lendlease REIT's foray into sustainable financing comes on the back of Lendlease Asia's net-zero carbon roadmap introduced in October 2021. Since the announcement of its Mission Zero plans in 2020, Lendlease has made significant inroads towards achieving its ambitious targets of net zero carbon emissions by 2025 and absolute zero carbon emissions across all its operations by 2040. In its drive towards a greener and socially resilient future, Lendlease is also aiming to create $245.5m worth of social value by 2025.