Real estate investor and fund manager Cromwell Property Group (ASX:CMW) (Cromwell or Group) has secured a €66 million green loan for the 61,000 sq m Janki shopping centre in Warsaw, Poland.
Arranged under Cromwell’s new Sustainable Finance Framework, this is the second green loan the company has secured, having transitioned an existing A$130 million bilateral loan on the Cromwell Riverpark Trust in Australia earlier this year.
The loan was provided by the Polish branch of HSBC Continental Europe. Under the terms of the agreement, Cromwell will need to report on a number of sustainability measures, including renewable energy usage, annual greenhouse gas emissions and ensure that in any given reporting year at least 50% of new leases include green clauses that cover scope 3 emissions.
One of six retail assets in Cromwell’s Polish retail fund, Janki shopping centre is certified BREEAM In-use Excellent. The fund scored 85 in the GRESB index in 2022 and won the BREEAM-GRESB Award for Corporate Investment in Responsible Real Estate in March 2017.
Afraz Ahmed, Cromwell’s Head of Treasury for Europe, commented: “The second green loan that Cromwell has agreed since launching our Sustainable Finance Framework earlier in the year, this transaction demonstrates our continuing commitment to achieving a more sustainable financing structure across the assets we manage in Europe and Australia.
“Throughout this process, we’ve noted a strong alignment of interest with our network of issuers and financial institutions, who are equally committed to achieving more sustainable ways to finance real estate assets.”
Lara Young, Cromwell’s Group Head of ESG, said: “Cromwell’s Sustainable Finance Framework is a critical part of our pathway to achieving net zero by 2045, making it possible to measure and account for scope 1,2 and 3 emissions in our portfolio.
“This is an excellent example of cross-team collaboration at Cromwell, drawing on expertise from our in-house ESG, Treasury and CEE teams. We’ve added a new dimension to our strategy by proving that we can match debt funding needs with sustainability outcomes across Cromwell assets.”
Wioletta Bratoszewska, Director, Real Estate Finance, HSBC Continental Europe Poland, added: “It was a pleasure to support Cromwell with this financing as Sustainability Coordinator and Lender. As the corporate real estate industry drives towards more sustainable ways of financing we are thrilled to have played a part in Cromwell’s sustainability agenda which aligns with our own focus on helping to deliver a net-zero global economy”.