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M+S bags S$1.95b green loan for Marina One from DBS, OCBC, UOB

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The proceeds of the green loan will partially finance Marina One's office and retail components, which are valued at about S$5 billion.

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The centrepiece of the integrated development is a sprawling biodiversity garden coined the "Green Heart", meant to be a civic space and green oasis within the financial district.

THE national joint venture between Malaysia and Singapore, M+S Pte Ltd, has obtained a S$1.95 billion green loan for its sustainable asset Marina One from DBS, OCBC Bank and United Overseas Bank (UOB).

This is the largest green loan for a real estate company in the Asia-Pacific to date, said the developer, which is 60 per cent owned by Malaysian sovereign wealth fund Khazanah Nasional and 40 per cent owned by Singapore investment firm Temasek Holdings.

The trio of Singapore lenders acted as joint green loan advisers and mandated lead arrangers for this transaction, they said in a joint statement with M+S on Monday.

The proceeds of the green loan will partially finance Marina One's office and retail components, which are valued at about S$5 billion. The residential component is not part of the green loan package.

The Marina One East and West Towers have nearly 1.9 million square feet (sq ft) of Grade A office space, including two high-density floors that are cantilevered across both towers. They house industry leaders and multinational corporations such as Facebook, PwC, Mitsubishi UFJ Financial Group, Julius Baer, Netflix, Rajah and Tann, and Prudential.

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Marina One's retail podium spans more than 140,000 sq ft across four floors with retail, lifestyle and dining offerings.

M+S on Monday also said that to date, over 80 per cent of the 1,042 luxury residences have been sold at the development's two premium residential towers, named Marina One Residences.

Sustainability is "at the heart of" Marina One's architecture and operation, according to the joint statement.

Every facet of the architecture serves to create environmental benefits. For instance, the building orientation and the meandering louvres on its facade provide each level with direct shade from the sun to reduce heat and cooling needs.

Innovative technologies are also used to conserve energy and boost efficiency, such as the recycling of heat and power, rainwater harvesting, energy-saving building management systems, and high-performance solar glazing.

The integrated development was named the global winner of the sustainable development category at the 2020 FIABCI World Prix d'Excellence Awards.

Kemmy Tan, chief executive officer of M+S, said that Marina One is "living proof that commercial real estate can, and should, embrace the principles of sustainability without compromising on design and quality".

DBS Bank's managing director and head of government-linked corporations, Ang Teck Wee, noted that now more than ever, companies need to reassess how they are creating value for society as the world "deals with some of the pressing challenges of our time".

Elaine Lam, OCBC Bank's head of global corporate banking, said the landmark deal will bolster Singapore's reputation in sustainable financing.

Meanwhile, UOB head of corporate banking Singapore, Leong Yung Chee, said the green loan to M+S reflects the lender's continued efforts in contributing to the development of sustainable cities and communities.

M+S was set up in 2011 to develop two projects in Singapore, Marina One and Duo, as part of a historic land-swap deal sealed between the two nations.

In July 2019, M+S confirmed that it would sell the office and retail areas of Duo for close to S$1.58 billion to Allianz Real Estate and Hong Kong private equity firm Gaw Capital Partners. It then announced in October that it would sell Duo's hotel component for S$475 million to Singapore developer Hoi Hup Realty.

As at 10.20am on Monday, DBS was down S$0.02 or 0.1 per cent to S$20.62, OCBC gained S$0.04 or 0.5 per cent to S$9.02, while UOB rose S$0.02 or 0.1 per cent to S$20.25.

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