SINGAPORE: GuocoLand Limited through its indirect subsidiaries, MTG Apartments Pte. Ltd. and MTG Retail Pte. Ltd., has secured a S$730 million green club loan from OCBC Bank, DBS Bank and ICBC Singapore Branch for the construction of a new luxury residential cum commercial development at Tan Quee Lan Street.
The development is a joint venture between GuocoLand and two subsidiaries of Hong Leong Holdings – Intrepid Investments Pte. Ltd. and Hong Realty (Private) Limited.
This is GuocoLand’s first green loan and the industry’s largest green loan for a development project in Singapore to date. Proceeds from the loan will go towards financing the project, including the efforts in sustainable development, water and energy conservation, and adoption of immersive urban greenery and landscaping.
GuocoLand, together with OCBC Bank acting as the Sole Green Financing Advisor, developed a Green Loan Framework which provides guidance for the evaluation of the new residential cum commercial development’s eligibility as a green project based on its sustainability objectives, as well as the management of the loan proceeds.
The Green Loan Framework has been structured in accordance with the Green Loan Principles issued in 2018 by the Loan Market Association and Asia Pacific Loan Market Association. DBS Bank and OCBC Bank are Joint Green Coordinators and, together with ICBC Singapore Branch, are Mandated Lead Arrangers.
GuocoLand has long championed environmental best practices in the built environment. The green loan reinforces GuocoLand’s continued commitment to sustainable development with the Tan Quee Lan Street site expanding its portfolio of environmentally friendly developments in Singapore.
Mr Cheng Hsing Yao, Group Managing Director, GuocoLand Singapore, said: “Climate change is one of the biggest challenge of our times. Our developments are always conceived, developed and managed with sustainability principles as the foundation. We were one of the first real estate developers to receive the BCA Green Mark Platinum award, and Guoco Tower was one of the earliest integrated developments in Singapore to receive both Green Mark Platinum and LEED Platinum certifications.”
“Our latest projects, Guoco Midtown and Midtown Bay, have been awarded the BCA Green Mark Platinum award this year and we are proud to continue developing buildings that are grounded on sustainability principles in the future, including this new development at Tan Quee Lan Street,” added Mr Cheng.
The new 30-storey residetial cum commercial development at Tan Quee Lan Street will be located right above the Bugis mass rapid transit (MRT) interchange station. It will have two residential towers with more than 500 units of luxury apartments as well as a retail podium with food and beverage establishments open to the public.
Guoco Midtown, GuocoLand’s latest integrated development at the Bugis-Beach Road district, was recently awarded the BCA Green Mark Platinum award for both its commercial component and its residential component, the 219-unit Midtown Bay which was launched in October 2019.
Guoco Midtown is GuocoLand’s second integrated development following Guoco Tower, its flagship development at Tanjong Pagar and Singapore’s tallest building with the 181-unit Wallich Residence at the apex. Guoco Tower received two of the highest achievable certifications in the industry – the Green Mark Platinum award by BCA and the Leadership in Energy and Environment Design (LEED) Platinum certification label by the U.S. Green Building Council. LEED certification is a globally recognised symbol of sustainability achievement and leadership.