City Developments and MCL Land get S$847M in green loans

City Developments signage on construction hoardingCity Developments signage on construction hoarding

City Developments and MCL Land have arranged S$847 million in green loans to finance two upcoming Singapore developments under their 50:50 joint venture, the two property developers said in a press release Tuesday.

In May, the two companies were awarded two government land sales (GLS) plots at Northumberland Road and Tengah Garden Walk Executive Condominium after placing the top bids at both sites, with the two sites set for more than 1,000 residential units.

DBS Bank will provide a 4.5-year S$429 million green loan financing package for the Northumberland Road site, while UOB will handle the 4.5-year green loan for the Tengah Garden Walk EC, the statement said.

Both sites are expected to obtain Singapore’s Building and Construction Authority’s (BCA) Green Mark Gold-plus rating, with the Tengah Garden Walk EC planning to be among the first super lower energy private developments in Singapore, the statement said. The BCA rating will classify them as eligible green projects with green loan principles, which are issued by the Loan Market Association and Asia Pacific Loan Market Association, the statement said.

Sherman Kwek, group CEO at City Developments, pointed to his company’s track record of obtaining green finance.

“Green financing offers an alternative financing avenue that plays a pivotal role in channelling capital towards building smarter, greener and more climate-friendly infrastructure. Including the latest loans for our two newly acquired projects, CDL has secured over S$3 billion of sustainable financing to date, in the form of various green loans, a green bond and a sustainability-linked loan,” Kwek said in the statement.

“We look forward to leveraging on our expertise in sustainability and working closely with our JV partner, MCL Land, to explore innovative green building technologies and solutions for our joint projects and minimising our impact on the environment,” Kwek added.

The Northumberland Road site, which will have direct access to the Farrer Park MRT station on the North East Line, will be used for a mixed-use project of around 407 residential units of up to 23 storeys and commercial retail space, including an infant and child care center, on the ground floor, the statement said.

The Tengah Garden Walk EC project is the first executive condominium site released in the Tengah New Town, which is planned as the city-state’s first smart and sustainable town, with green features and smart technology in a park setting, the statement said.

The joint venture will develop the project with 12 blocks of up to 14 storeys, with around 628 residential units in total, with the plot size allowing for generous landscaping, City Developments and MCL Land said.

The green loan will allow more sustainable features, such as solar photovoltaic systems to replace 30 percent of energy consumption from common areas and a passive facade design to encourage ventilation and less overall heat gain, the companies said.

Hongkong Land is MCL Land’s parent company.