With the intent to purchase a BCA Green certified luxury hotel
Hoi Hup Realty, a property developer based in Singapore, secured a green club loan worth SGD332.5 million (USD245.2 million) through its subsidiary Ophir-Rochor Hotel to partially fund the acquisition of the five-star hotel Andaz Singapore, reported finews.asia.
For this transaction, OCBC Bank served as the green loan advisor, with United Overseas Bank and Maybank Singapore as other club banks. The SGD475 million sale of the luxury hotel is considered as one of the biggest deals for a standalone hotel in the Asia Pacific region this year.
Since it was first established in 2013, Andaz received a BCA Green certified property rating for incorporating and expanding their energy-saving practices, such as utilising sustainable food procurement techniques, as well as the use of recycled water utilisation and LED lighting.
With such practices, Hoi Hup would be “on track to make further progress along its sustainability journey to which green finance will continue to play an important role,” said their representative.
In October, OCBC announced their intent to multiply their assets to SGD10 billion by 2022. And with this new transaction, the bank confirmed their readiness to move forward with the plan.
The deal with Hoi Hup “highlights the urgency in the shift towards green finance in our region. We are committed to uncover[ing] new opportunities across industries to finance sustainable initiatives which combat climate change,” said Linus Goh, OCBC Bank head of Global Commercial Banking.
Moreover, the Monetary Authority of Singapore also shared there support towards green and sustainability-linked loans in November, along with their plans to expand its green bond grant scheme.
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