31 Mar 2022
SINGAPORE, 31 MARCH 2022
Frasers Property's The Rowe at Whitechapel in London, UK, nearing completion
Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) today announced that it has secured a GBP100 million five-year green revolving credit facility (“Green Loan”). The Green Loan will be used to finance the development of The Rowe, a 12-storey office building in Whitechapel, London, that has already attained BREEAM1 UK Interim Certificate: Design Stage “Excellent” rating. This is the Group’s first green development loan in the UK.
The Green Loan will enjoy a reduction in interest margin upon its first drawdown. The reduced interest margin will be maintained should The Rowe retain its BREEAM “Excellent” rating. Upon The Rowe’s targeted completion in the third quarter of 2022, the property will receive BREEAM UK New Construction Certification “Excellent” rating.
In January 2022, the Group secured its first UK sustainability-linked loan with a reduction in interest margin from its second year based on Frasers Property (UK) Limited maintaining its four-star GRESB rating. At the 2021 GRESB rankings, the Group achieved five global and regional sector leadership positions.
Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, said, “As part of the Group’s sustainability framework, we have set five sustainability goals. These include having 80% of our owned and asset-managed properties green-certified by 2024, and for the majority of our new green and sustainable asset portfolio to be financed with green and sustainable financing within the same time frame. In the UK, around 30% 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.”
As part of its five sustainability goals unveiled in January 2021, the Group has committed to be a net-zero carbon organisation, inclusive of Scopes 1, 2 and 3 emissions, by 2050. FPUK is aiming for net-zero carbon in all landlord-controlled areas by 2030, as part of the Better Buildings Partnership Climate Change Commitment that is aligned to the Science Based Targets initiative.
FPUK is a fully integrated developer, investor and asset manager of residential and commercial property, The commercial portfolio includes 520,000 square metres of office and industrial business space across six business parks in the UK. In 2021, it launched The Rowe, a 12-storey office building in Whitechapel, London, next to the tech hub at Shoreditch.
The Green Loan is funded by Mizuho Bank, Ltd and Oversea-Chinese Banking Corporation Limited (OCBC Bank), which also acted as the Green Loan Coordinators. Together with this Green Loan, the Group, including subsidiaries and associated entities, has secured 26 green or sustainability-linked loans, and two sustainability bonds, raising more than SGD6 billion in total.