ARA, Chelsfield secure S$385.8m green loan for commercial building

ARA, Chelsfield secure S$385.8m green loan for commercial building in Singapore
Perspective of building façade post renovation

ARA Asset Management Limited (ARA) and Chelsfield have secured a S$385.8 million green loan from DBS Bank and United Overseas Bank Limited (UOB) to finance the acquisition and asset enhancement of their 50:50 joint venture, 5One Central (formerly known as Manulife Centre), in Singapore.

The loan is issued under the green loan framework jointly developed by ARA and Chelsfield, in line with both companies’ commitment to developing and designing buildings that achieve the highest standard of sustainability.

5One Central is expected to receive the Green Mark Platinum certification awarded by Singapore’s Building and Construction Authority once the asset enhancement is completed in the second half of 2021.

Spanning across 241,000 sqft, the building comprises a ground floor retail podium and large, contiguous, and column-free office floor plates of at least 23,000 sqft.

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ARA and Chelsfield are reinventing the 11-storey commercial building with several asset enhancement initiatives to improve its environmental footprint and to create a positive impact on the community. For example, the newly-introduced vertical and horizontal fins enhance the building’s façade while providing much needed shade to diminish the building’s solar heat gain. This ultimately reduces the building’s cooling load and energy consumption.

Stephen Tang Head of Value Add and Opportunistic Real Estate, ARA Private Funds (APAC Real Estate), said, “As a responsible real assets fund manager, ARA is committed to achieving long term sustainability in our investments and assets. 5One Central, with various initiatives introduced to improve energy efficiency, reflects a strong commitment to our ESG cause. Securing this green loan is part of achieving greater sustainability in our properties while creating value for our investors.”

Nick Loup, Group Vice Chairman, Chief Executive Officer at Chelsfield Asia Limited, said, “In this major repositioning, we have been able to improve significantly the environmental performance of the building while refreshing the design to create a contemporary setting that appeals to the dynamic technology and creative industries.”