United Engineers converts S$333m loan to green loan for residential property development

UNITED Engineers has converted a S$333 million loan into a green loan for residential property development, the company said in a media statement on Monday.

The company secured the original loan from DBS, OCBC and UOB in November 2018. The green loan will be used to develop a land parcel along Dairy Farm Road into a green residential property comprising about 450 residential units.

The property's green features include energy efficiency initiatives such as sleep mode-equipped lift and escalator systems and energy efficient air conditioning and lighting.

It will also have water fittings with Singapore water agency PUB's water efficiency labelling scheme.

For sustainability, it will optimise concrete usage and use sustainable building systems for more than 50 per cent of the constructed floor area, in addition to using green products such as low volatile organic compound paints.

The green features are expected to bring annual residential energy savings of up to 473,206 kilowatt hour (kWh), which is 20.6 per cent higher than average Singapore standards. Annual commercial energy savings are projected at up to 681,961 kWh, 25.8 per cent higher than average Singapore standards.

Residential water savings are projected at up to 21,302 cubic metres per year, with commercial water savings projected at up to 2,658 cubic metres.

There are also plans to include amenities such as a childcare centre, a supermarket, a food court and retail shops.

"We believe in operating and growing our business in an environmentally responsible manner. We are proud to be one of the first companies in Asia to have successfully converted a loan into a green loan for a residential property in Asia," said Roy Tan, United Engineers' group managing director.

He added that more companies should consider environmental sustainability and climate change benefits as part of their overall building plans.

United Engineers shares were down 1.57 per cent, or S$0.04, at S$2.51 as at 2.40pm.