Vancouver-based Concert Properties is the first to gain access to a new lending product that supports sustainable projects with strong environmental benefits, including combatting climate change.
The company announced that the $71.5 million construction loan it had acquired for the Tapestry at Victoria Harbour development was converted to a green loan based on the strong green attributes of the project, including its expected lower carbon and energy footprint versus a comparable building.
Tapestry at Victoria Harbour is an active living community comprising for-sale condominiums and residential rental suites, along with supporting amenity and service space, and a small retail component. The development is projected to use 33 per cent less energy than a comparable building and have an overall energy use intensity of 118 Kwh/sqm/yr. This intensity is commensurate with ‘Step Three’ of the ‘BC Energy Step Code’. Concert is also targeting certification under the Canada Green Building Council’s Leadership in Energy and Environmental Design (LEED) at the ‘Gold’ level for this building.
Concert recently developed a Sustainability Framework that lays out its plan for the next 30 years to make the company a leader in sustainable buildings, including aggressive carbon emissions reductions. The company has more than 20 buildings that have achieved LEED certification and/or Tier-2 under the Toronto Green Standard, or Step-3 under the Province of B.C. Energy Step Code.
“Tapestry at Victoria Harbour demonstrates our commitment to quality, sustainability and creating communities that inspire and enhance the wellness of an active aging resident,” says Brian McCauley, President and CEO, Concert Properties. “We are dedicated to making a positive contribution to the economy, society and the environment. We are pleased to be selected for HSBC’s Green Loan program. It recognizes Concert’s commitment to achieving greater sustainability in our portfolio.”
This first Green Loan Principles-aligned green loan in Canada follows HSBC Bank Canada’s launch of a green finance proposition in late 2019. It demonstrates the bank’s continued leadership in sustainable finance, and the value that its sustainability expertise can bring to its clients.
HSBC has been at the forefront of sustainable financing and is the top underwriter of green, social and sustainable bonds globally. In 2017, the bank committed to provide and facilitate $100bn of sustainable financing by 2025 to clients to develop or install clean energy and lower-carbon technologies. HSBC Bank Canada’s contribution to HSBC’s $100bn sustainable finance commitment was over $1bn in 2019 and included participating in $6.4bn of green and sustainable bond transactions for Canadian clients.
“We are proud to help our long-standing client, Concert Properties, extend their sustainability leadership into the area of finance and pioneer the first green loan in Canada,” said Linda Seymour, Head of Commercial Banking, HSBC Bank Canada. “Our customers are becoming increasingly focused on ESG issues, and we are committed to offering them products that help them invest in creating a lower carbon economy.”