City Developments Limited (CDL) and MCL Land have successfully secured green loans amounting to S$847 million for the financing of two upcoming developments in Singapore, under a 50:50 joint venture (JV). Earlier this year, CDL and MCL Land were awarded two Government Land Sales (GLS) plots at Northumberland Road and Tengah Garden Walk, having placed the top bids at both sites.

CDL and MCL Land secured a 4.5-year S$429 million green loan financing package for Northumberland Road from DBS Bank and a 4.5-year S$418 million green loan for Tengah Garden Walk Executive Condominium (EC) from UOB. Both facilities are some of the largest green loans in real estate referencing the Singapore Overnight Rate Average (SORA) to date and also mark both developers’ first SORA-based green loans.

The loans will fund the development of these two projects which are committed to securing Singapore’s Building and Construction Authority (BCA) Green Mark Gold^PLUS certifications and are consistent with CDL’s Sustainable Finance Framework as well as the Hongkong Land Green Financing Framework. By attaining the BCA Green Mark Gold^PLUS certifications, the projects will be classified as Eligible Green Projects aligned with Green Loan principles issued by the Loan Market Association and Asia Pacific Loan Market Association.

CDL Group Chief Executive Officer Mr Sherman Kwek said, “As a sustainability pioneer that issued the first green bond by a Singapore company back in 2017 followed by the inking of the first green loan for new property developments in 2019, we have demonstrated that green financing offers an alternative financing avenue that plays a pivotal role in channelling capital towards building smarter, greener and more climate-friendly infrastructure. Including the latest loans for our two newly acquired projects, CDL has secured over S$3 billion of sustainable financing to date, in the form of various green loans, a green bond and a sustainability-linked loan. We look forward to leveraging on our expertise in sustainability and working closely with our JV partner, MCL Land, to explore innovative green building technologies and solutions for our joint projects and minimising our impact on the environment.”

Northumberland Road Mixed-Use Project

The 94,000 square feet (sq ft) site located within the city fringe area will be developed into a mixed-use project comprising around 407 residential apartments of up to 23 storeys and commercial retail space (including an infant care and childcare centre) on the ground floor. Once completed, the development will enjoy direct access to Farrer Park MRT station on the North East Line, with Dhoby Ghaut MRT station, a triple-line MRT interchange, only two stops away.

Green features range from energy-efficient fittings such as 5-ticks air conditioning systems and LED lighting, as well as a Pneumatic Waste Conveyance System.

Tengah Garden Walk EC Project

The sizeable 237,032 sq ft site situated in Tengah New Town is the first EC site in Tengah New Town released under the GLS programme. Tengah New Town is set to become the first smart and sustainable town, with green features and smart technologies nestled within a forest park setting. Tengah Garden Walk EC will be the first GLS private residential project that will be certified with the BCA Green Mark Gold^PLUS (Super Low Energy) rating. The JV will develop an EC project comprising 12 blocks of up to 14 storeys with around 628 residential units in total. The sizeable land area will also allow for generous landscaping.

The green loan of S$418 million will facilitate the adoption of more sustainable features within the development. Green features will include solar photovoltaic systems to replace 30% of energy consumption generated from the common areas and a passive facade design that encourages healthier ventilation and a reduction in overall heat gain.