Lendlease Global Commercial REIT Secures The Largest Sustainability-Linked Loan Amongst REITs In Asia
February 23, 2022 – Lendlease Global Commercial Trust Management Pte. Ltd, the manager of Lendlease Global Commercial REIT (LREIT), has secured LREIT’s first Sustainability-Linked Loan (SLL) from Citi, DBS and OCBC.
The S$860 million unsecured SLL is the largest amongst Asia-Pacific REITs to date.
Loan proceeds will be used to fund the acquisition of Jem, an integrated office and retail development, and for general corporate and working capital purposes.
The SLL incorporates interest rate reductions linked to predetermined sustainability performance targets, allowing LREIT to enjoy savings in borrowing costs as it achieves these targets through its portfolio in Singapore.
In alignment with Lendlease, LREIT follows a net zero investment roadmap with the aim ofdriving 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;
- Trialing alternative fuels and phasing out fossil fuel for backup generators on assets;
- Developing and piloting the next generation of green leases for tenants
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