Brookfield Asset Management has closed $970 million in green financing for three projects, including a $450 million green loan for One The Esplanade Perth.
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Shane Ross, Brookfield Asset Management’s head of portfolio for real estate in Australia, says the sustainable finance is consistent with the company’s approach to ESG “but is also in response to investor demand and delivers access to a more diverse pool of capital”.
Green finance for a new build, like One The Esplanade, embeds sustainability from the start of the design process. One The Esplanade has been designed to achieve 5 Star NABERS and Green Star ratings and a WELL Gold rating from the International WELL Building Institute.
Brookfield has also secured loan facilities for recently-completed 405 Bourke Street ($270 million) and Brookfield Place Sydney ($250 million).
By tying established assets to green finance, Brookfield says it has “further impetus” to improve the buildings through smarter operations. “If a building meets sustainability linked hurdles, it becomes a better performing asset with a lower environmental impact,” Brookfield notes.
Brookfield has achieved Climate Bond Initiative certification – considered the global ‘gold class’ standard for green loans – for $1.8 billion of green loans.
Brookfield’s announcement comes as sustainability strategy drives two thirds of businesses across Asia Pacific, according to fresh research from Frost & Sullivan and Autodesk.
Enabling a Sustainable Future through Digitalisation surveyed companies across architecture, engineering, construction, design and manufacturing to determine 66 per cent ranked sustainability as “important” or a “cornerstone” of its strategy.
The key drivers for sustainability, according to Autodesk, were regulation and market forces (92%), investor relations (87%) and competitive advantage (80%).
Brookfield Asset Management has more than US$625 billion of assets under management across real estate, infrastructure, renewable power, private equity and credit.
Construction on One The Esplanade is underway with completion expected in mid-2023.
