Commonwealth Bank and Oxford Properties Group have signed Australia’s first built-to-rent green loan to support the development of Indi Sydney City.
The $130-million green loan will contribute to the construction of one of Australia’s most sustainable high-rise residential buildings and the Sydney CBD’s first build-to-rent development.
The development will be a five star Green Star building that will be carbon neutral in operations and the first to achieve a NABERS energy rating for built-to-rent.
Oxford Properties is a global real estate investor, asset manager and commercial developer, and is the owner of Indi City Sydney. Oxford Properties Group director of development Nellie O’Keeffe said the objective in executing Green Loans through the Green Financing Framework is to finance properties that will deliver positive environmental outcomes.
She said: “Indi Sydney City is a wonderful example of the development and operation of an energy efficient, low-carbon community in action.
“At Oxford Properties, our purpose is to create economic and social value through real estate – safeguarding the future and creating opportunities for our customers, communities, partners, and people.
“The securing of this green loan will help us deliver one of the most sustainable places to live in Sydney.”
To qualify for the green loan, Oxford and Indi’s owner Investa collaborated on a Green Financing Framework, which articulates the use and management of proceeds, with borrowings transparently earmarked for eligible green assets.
The framework was developed in line with Green Loan Principles, accepted as one of the main guidelines for the issuance of green loans globally.
Indi City Sydney will be the first project to utilise a green loan under this new Green Financing Framework.
The development adopts best practice sustainability outcomes throughout its design, construction, and operation, such as material choice, onsite renewable generation, rainwater reuse, and will achieve a high Basix Energy rating of 30 per cent.
Key sustainability initiatives incorporated in the building’s design include:
- Regenerative lifts that capture heat generated by elevators during use and convert it into reusable energy for the building, delivering 20 per cent to 25 per cent improvements to lift energy efficiency.
- High-efficiency central cooling system and tempered air-conditioning which disables cooling and heating in common areas when outdoor conditions are favourable.
- Provision of energy and water efficient appliances to all apartments.
- Sub-metering for improved tracking of operational performance.
The 234-apartment build-to-rent development will offer a range of one-bedroom, two-bedroom and three-bedroom apartments, and provide an extensive offering of shared amenities and services.
Investa general manager corporate sustainability Margot Black said the green loan reflects its long-term commitment to transitioning to a low-carbon economy.
She said: “Investa has been focused on diversifying its sources of debt and supporting the growth of the sustainable finance market in Australia since the platform closed its first green loan in 2019.
“The successful development of a Green Financing Framework with Oxford, and the execution of the first green loan for the Indi platform under this framework, is a significant achievement for all parties.
“It further re-enforces our leadership position in corporate sustainability and reflects our long-term commitment to transitioning to a low-carbon economy.”