SINGAPORE (EDGEPROP) - Frasers Property has secured a new green development loan in the UK to finance its development of The Rowe, a 12-storey office building in Whitechapel, London. The loan, a GBP100 million ($178 million) five-year green revolving credit facility, is funded by Mizuho Bank and OCBC Bank. It is Frasers Property’s first green development loan secured in the UK.

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Slated for completion in 3Q2022, The Rowe has already attained an “excellent” rating for its design stage under the BREEAM (Building Research Establishment Environmental Assessment Method) UK Interim Certificate scheme. This provides independent third-party certification of the assessment of the sustainability performance of building and infrastructure projects. The green loan will qualify for a reduction in interest margin upon its first drawdown if The Rowe retains the “excellent” BREEAM rating.

As part of its sustainability effort, Frasers Property aims to have 80% of its owned and asset-managed properties green-certified by 2024, and for the majority of its new green and sustainable asset portfolio to be financed with green and sustainable financing within the same period.

“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,” says Loo Choo Leong, group CFO of Frasers Property.

As a group, Frasers Property has secured 26 green or sustainability-linked loans, and two sustainability bonds, raising more than $6 billion in total.