Cedar Pacific and CBRE Investment Management have launched a green loan partnership with Sumitomo Mitsui Banking Corporation (SMBC), a milestone in sustainable financing for the purpose-built student accommodation asset class.

This green loan, the first of its kind for Cedar Pacific, has been facilitated by SMBC and underscores a shared vision of supporting projects with positive environmental impacts. The A$101 million deal earmarks funds specifically for Cedar Pacific’s 655-bed Kensington project which is targeting a 5-Star Green Star Buildings rating upon completion and is within easy walking distance to the University of New South Wales.

Cedar Pacific’s commitment to ESG

Cedar Pacific is one of Australia and New Zealand’s leading investment managers in the Living Sector and at the forefront of developing innovative, sustainable residential communities. With a portfolio of PBSA and BTR projects that blend modern living with environmental responsibility, Cedar Pacific is committed to setting new standards in the sector. In addition to achieving the Green Building Council of Australia rating, the Kensington project will also include sustainability features such as:

• Procurement of renewable energy supply from day one of operations.
• 90% of the construction and demolition waste diverted from landfill.
• Inclusion of metering and monitoring equipment in the design to collect waste, water and energy data for operational efficiency.
• Extensive green space for resident amenity.

Cedar Pacific will also work to obtain certification under the Australian Government’s Climate Active program once operational.

Beyond its green credentials, the project will create a vibrant, supportive community for students when opening in late 2024. Its broad mix of social and academic amenities is designed to promote a balanced lifestyle, fostering both academic success and personal wellbeing.

Cedar Pacific will also work to obtain certification under the Australian Government’s Climate Active program once operational.

‘’Securing this green loan is a testament to Cedar Pacific’s long-term relationship with SMBC and strategic commitment to sustainability and innovation in the living sector,” said Bernard Armstrong, CEO of Cedar Pacific.

“We believe our sustainability initiatives are critical to risk mitigation and value creation,” said Alexandra Crossing, CBRE Investment Management’s Head of APAC for Indirect Private Real Estate. “Clients want to see tangible actions and this green loan will help us deliver a community that reflects our core values and the expectations of both our investor clients and the students who will live there.”

“SMBC is pleased to have supported Cedar Pacific and CBRE Investment Management with the green construction facility for the purpose-built student accommodation at Kensington, Sydney. As a leading bank in sustainable finance, we look forward to supporting our clients in meeting their sustainability goals and creating greater social value in Australia and across Asia Pacific”, said Rajeev Kannan, Managing Executive Officer and Co-Head of SMBC’s Asia Pacific Division.

About CBRE Investment Management

CBRE Investment Management is a leading global real assets investment management firm with $147.5 billion in assets under management* as of December 31, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.

About SMBC

Headquartered in Tokyo, Sumitomo Mitsui Banking Corporation (SMBC) is a leading global financial institution and a core member of Sumitomo Mitsui Financial Group (SMBC Group). Built upon our rich Japanese heritage since 1876, we put our customers first and provide seamless access to, from and within the Asia Pacific region.

SMBC is one of the largest Japanese banks by assets, with over ¥238,700 billion in total assets and strong credit ratings across our global integrated network spanning 39 countries and territories, 15 of which are here in the region. Our regional reach extends from corporate and institutional companies to individual customers supported by our Multi-Franchise Strategy in Indonesia, India, Vietnam and the Philippines. We work closely as one SMBC Group to offer personal, corporate and investment banking services to meet the needs of our customers.

With sustainability embedded within our strategy and operations, we are committed to creating a society in which today’s generation can enjoy economic prosperity and well-being, and pass it on to future generations.

This announcement is for informational purposes only and should not be viewed as investment advice or an offer or solicitation.