THE Commonwealth Bank will be the sole financier and green coordinator on Charter Hall’s $410 million 480 Swan Street development, in Australia’s first green development loan.
With CBA supporting Charter Hall with a country first Climate Bond Initiative-certified Green Development Loan, the group will receive a five-year, $202 million construction to aid delivery of their development in Melbourne’s fringe suburb of Richmond.
The commercial office development is being purpose built and designed to function as Australia Post’s new Melbourne headquarters.
Charter Hall Group achieved the Climate Bond Initiative (CBI) certification for the facility with CBA due to the site being developed under a carbon-neutral framework.
“Charter Hall’s green construction facility breaks new ground in Australia’s green loan market, an achievement that reflects the high sustainability standards at the core of their design and development process,” said Michael Thorpe, managing director of real estate and future cities at Commonwealth Bank.
480 Swan Street is targeting a 6-star Green Star rating and 5-star NABERS Energy rating, for the building which is set to include 32,000sqm of office space across 12 levels, and 1,000sqmm of ground floor retail.
“We are pleased to have secured this green loan for 480 Swan Street, which is the first loan under Charter Hall’s new Green Financing Framework. We are committed to embedding ESG into every aspect of our business, and this facility with CBA is a great example of that plan in action,” said Phil Schretzmeyer, head of treasury & group planning, at Charter Hall.
Charter Hall Prime Office Fund, in partnership with Victoria Funds Management Corporation recently secured Australia Post as its anchor tenant in a 10-year pre-lease agreement , with Australia Post becoming one the first multi-billion corporations to exit Melbourne’s CBD.
“This new application of the green loan overlay will incentivise more Australian property developers to commit to building new commercial building stock to high environmental standards,” said Charles Davis, managing director of sustainable finance and ESG at Commonwealth Bank.