30 May 2022
Central Place Sydney is a joint venture between Frasers Property Australia and Dexus. The ~$3 billion workplace of the future will be the ‘beating heart’ of the NSW Government’s globally significant technology and innovation hub ‘Tech Central’, and the largest integrated workplace in the precinct boasting world-leading sustainable design and unrivalled connectivity. The workplace of the future is targeting a 6 Star Green Star Design & As Built rating by the Green Building Council of Australia, a Platinum core and shell WELL certification for the base building as well as a 5.5 Star NABERS Energy and a 4 Star NABERS Water rating.
SINGAPORE, 30 MAY 2022
Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) today announced that Frasers Property Australia (“FPA”) has secured a corporate syndicated sustainability-linked term loan and revolving credit facility (“SLL”). To incentivise sustainable practices, the SLL has a price reduction structure with interest cost savings from the second year onwards if FPA maintains a minimum four-star Global Real Estate Sustainability Benchmark (“GRESB”) ratings annually.
The A$600 million five-year SLL, which comprises a A$300 million term loan to refinance a maturing loan and a A$300 million revolving credit facility to be used for general corporate purposes, is issued under the Sustainable Finance Framework (“the Framework”) (Link). This is the fourth green / sustainable financing secured by the Group’s business in Australia since FPA secured its first green loan in March 2019, which was also the first corporate syndicated green loan derived from the LMA/APLMA Green Loan Principles1 in Australia.
Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, commented, “We are encouraged by the credit market’s recognition of our Australia business’s strong sustainability credentials and the Group’s financial strength. One of Frasers Property’s sustainability goals is to finance the majority of our new sustainable asset portfolio with green or sustainable financing by 2024. We are pleased with our progress thus far, having secured over S$8 billion of green or sustainable financing across the Group since our first green loan in September 2018."
Frasers Property’s operations in Australia are certified carbon neutral under the Australian Government’s Climate Active Carbon Neutral Standard. FPA has set net-zero carbon target in development and operation by 2028 under approved Science-Based Targets2. FPA has maintained a five-star GRESB rating since 2018. For its new developments in Australia, Frasers Property is aiming to achieve a five-star GRESB rating, with at least a four-star rating for its existing portfolio. The SLL was underwritten by a syndicate of three banks:
|Mandated Lead Arrangers, Underwriters and Bookrunners||Barclays Bank PLC (as Underwriter) and Barclays Capital Asia Limited (as Mandated Lead Arranger and Bookrunner); Mizuho Bank, Ltd.; and UOB|
|Sustainability Coordinator||Barclays Capital Asia Limited
1 The Green Loan Principles were launched by the Loan Market Association (“LMA”) and Asia Pacific Loan Market Association (“APLMA”) in March 2018. The Green Loan Principles set out a clear framework to promote integrity in the development of the green loan market by clarifying the characteristics of a green loan, based around the following four core components:
i. Use of Proceeds
ii. Project Selection and Evaluation
iii. Management of Proceeds