Frasers Property gets green loan for UK commercial development project

British pound notes. Photo by Christopher Bill on UnsplashBritish pound notes. Photo by Christopher Bill on Unsplash

Frasers Property said it secured a GBP100 million five-year revolving green credit facility to finance the development of The Rowe, a 12-storey office building in Whitechapel, London, which has already attained BREEAM U.K. Interim Certificate with an “Excellent” rating. 

The green loan will have a reduction in interest margin on its first drawdown, which will be maintained if The Rowe retains the BREEAM “Excellent” rating, the company said in a filing to SGX Thursday. BREEAM stands for building research establishment environment assessment method.

Loo Choo Leong, group chief financial officer of Frasers Property, said in the statement: “In the U.K., around 30 percent of the group’s portfolio of business parks are now green-certified, and this latest green loan is our second green or sustainable financing in the country. We will continue to work hard to achieve our sustainability goals in a timely manner.”

The green loan is funded by Mizuho Bank and OCBC, which also acted as green loan coordinators, the filing said.

The group has committed to be a net-zero carbon organization by 2050, with Frasers Property UK (FPUK) aiming for net-zero carbon for all landlord-controlled areas by 2030. FPUK’s commercial property portfolio has six business parks in the U.K., and it launched The Rowe office project in 2021. 

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