Sustainability loan intention on reducing the environmental impact of commercial property
The Commonwealth Bank (CBA) this month unveiled its Property Sustainability Upgrade Loan that will help Australian businesses reduce the environmental impact of their commercial properties, while lowering the building’s future operating costs. .
Available to new and existing clients, eligible businesses now have the option to increase their commercial real estate investment loan up to 20% to make sustainable upgrades to their properties to achieve a NABERS rating improvement. or reduce a property’s emissions. In close collaboration with NABERS, the CBA has developed loan eligibility criteria to help companies reduce their emissions by at least 30% and meet or exceed average market performance. The loan contains no margin, no set-up, line or usage fees required.
ABC’s executive director of business loans, Clare Morgan, said the bank intends to reduce the impacts of commercial properties on the wider environment.
“Sustainability improvements can dramatically reduce a property’s carbon footprint while improving energy and water efficiency,” she says.
“As the largest commercial real estate lender in Australia, we play an important role in helping the industry reduce emissions. To encourage businesses – both our existing and new customers – to play their part and make these upgrades, we are offering the option of borrowing up to an additional 20%, with no line charges or fees. establishment through these loans.
“Investing in lasting improvements also makes business sense as it can increase property values while lowering operating costs, making the property more attractive to long-term tenants and potential buyers. “
Businesses can apply for loans if they are looking to implement a number of sustainable upgrades to a building or property. These include energy efficient lighting, green and smart building management systems, energy efficient elevators and escalators, solar panels and battery storage, upgrades to heating, ventilation and air conditioning, water recycling systems, siding and insulation upgrades, and fenestration efficiency upgrades.
The benefits of improving the durability of commercial properties are numerous. They can dramatically lower the costs of operating properties, attract more tenants, reduce sustainability risk factors, give a landlord potential access to government grants and financing programs, and have a positive environmental impact.
“CBA and NABERS have worked together to design this offering that encourages building upgrades that will result in real and measurable sustainability results. We are excited about the potential of partnering NABERS datasets with a sustainable loan product that could have a positive long-term impact on emissions reductions, ”said Magali Wardle, Head of Market Development at NABERS.
“With over 60% of commercial office buildings currently having a NABERS energy rating below 5 stars, this loan has great potential for buildings to achieve significant energy efficiency improvements.
“We understand that this is a difficult time with some buildings experiencing reduced foot traffic or lower occupancy, however, for some businesses it has become the perfect time to undertake building upgrades and improvements. real estate and we have already seen a strong demand.
“We encourage new and existing customers to talk to us and see if a sustainability upgrade might be right for them. Depending on their situation and location, new green credentials could also make them eligible for other incentives such as instant write-off of federal government assets or various state-based energy upgrade programs.
For more information on the loan, visit commbank.com.au.