This article is from the Australian Property Journal archive
MAJOR lender NAB is pushing further into the green finance space with a new sustainability-linked loan offering to support investment in, and development and retrofitting of commercial buildings.
The Green Finance for Commercial Real Estate (CRE) loan loan will support the purchase of existing commercial buildings with a 5.5-star NABERS rating, the development of new commercial buildings that have achieved a Green Star Design review rating and are on track to receive a Green Star rating of 5 or above, and retrofitting projects for building performance upgrades that demonstrate at least a 30% reduction in emissions intensity from their existing baseline rating and subject to a NABERS commitment agreement.
“With about 10% of Australia’s greenhouse gas emissions stemming from the operations of commercial buildings, there is clearly a need to mitigate the sector’s environmental impact and reduce its greenhouse gas emissions,” said NAB executive business lending, Rowan Munchenberg.
“As Australia continues to transition toward net zero, we’re working alongside our customers as they respond to changing consumer demand and strive to decarbonise.
“With increasing evidence commercial buildings with stronger environmental ratings achieve more favourable economic outcomes, it’s likely demand for energy efficient and environmentally friendly commercial property will continue to grow.”
He said business owners “know there are significant economic and environmental opportunities in reducing emissions”, but need commercial solutions to assist them.
NAB has also invested in a bank-wide climate training program with Melbourne Business School to provide colleagues with the knowledge and skills to better support customers with their transition efforts.
“Our climate trained CRE bankers are working with eligible customers, offering insights and expertise to help advance the development of specific commercial real estate projects,” Munchenberg said.
Green loans have been becoming more and more common across the commercial real estate sphere. In October, Australia’s largest owner and operator of purpose-built student accommodation (PBSA), Scape, converted a $1.4 billion loan into a sustainability-linked loan in a first for the country’s PBSA sector.
