London property developer Great Portland Estates on Thursday looked to boost its green credentials by agreeing a £450 million financing deal linked to meeting environmental targets.
In a modern move within the UK property sector, part of the interest GPE pays on the “environmental, social and governance”–linked loan to lenders will be dependent on whether it meets certain goals.
Targets will be measured annually. If the firm meets them the interest it pays to banks will be marginally lower, or higher if not met. That extra money gained or lost will be donated to charities focused on the environment.
GPE’s finance chief Nick Sanderson said there are a number of targets for the landlord, which has an empire of offices, shops and homes. They will involve having more gardens and trees on or around buildings.
It will also look to slash energy use at existing and new properties, encouraging tenants to use heating and lighting more efficiently.
The firm will also work towards creating net zero carbon new buildings from 2030.
The banks involved in the five-year loan are Santander, NatWest, Wells Fargo, Lloyds and Bank of China.
