CapitaLand ties up with Sembcorp to install rooftop solar farms at six properties

Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.Top of the CapitaLand building in Singapore’s central business district (CBD); taken September 2018.

CapitaLand entered a tie-up with Sembcorp Industries to install rooftop solar farms with 21,240 panels on six of the developer’s properties by the end of this year, the two companies said in filings to SGX before the market open Tuesday.

The solar farms will be able to generate a total of around 10,292 megawatt hours of energy annually, equivalent to powering around 2,300 four-room Housing & Development Board (HDB) public-housing apartments a year, CapitaLand said.

“The energy generated through this renewable source will significantly lower CapitaLand’s carbon footprint. The combined rooftop solar facility will avoid over 4.3 million kilograms of carbon emissions each year,” CapitaLand said.

“Furthermore, there is no installation cost incurred by the group, making this initiative a good business case for sustainability,” CapitaLand said.

The property developer added the solar farms will also help it meet its sustainability target of generating at least 20 percent of its energy consumption from renewable energy by 2025.

In a separate filing to SGX, Sembcorp Industries said any surplus power from the solar farm will be channeled to the grid. The infrastructure player added the installation will be Singapore’s largest combined rooftop solar farm by a real estate company.

Koh Chiap Khiong, head of energy for Singapore, Southeast Asia and China at Sembcorp, pointed to increased demand for companies to adopt more sustainable practices.

“This creates more opportunities for us to provide our solar power solutions which not only help them save money, but also reduce their carbon footprint,” Koh said in the statement.

“This new project also reinforces Sembcorp’s strong commitment to sustainability and our continued efforts to support Singapore’s goal of reaching its target of 350 megawatt-peak of solar capacity by next year,” Koh added.

Sembcorp has more than 140 megawatt-peak of rooftop power capacity in operation and under development within Singapore, Sembcorp said.

CapitaLand signs green loans

CapitaLand said it also signed new sustainability-linked loans with Credit Agricole Corporate & Investment Bank, Natixis Bank and Societe Generale to raise S$300 million. The five-year multicurrency loans’ interest rates will be reduced based on CapitaLand reaching environmental, social and governance (ESG) metrics, the filing said.

The developer can use the loans on green projects such as installing solar panels and for general corporate purposes, the filing said.

“After securing the first and largest sustainability-linked loan in Asia’s real estate sector last year, we are now even more convinced that good sustainability practices can reap positive tangible benefits for business,” Andrew Lim, group chief financial officer at CapitaLand, said in the statement.

“We hope to demonstrate that financial returns can be in sync with the interests of our environment and the community,” Lim said.

The six properties are held under CapitaLand’s commercial and industrial REIT, Ascendas REIT, CapitaLand said. The list of properties comprises 1 Changi Business Park Avenue 1, 9 Changi South Street 3, 2 Senoko South Road, 40 Penjuru Lane, Techpoint and LogisTech, the filing said.

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