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UOL obtains S$120m green loan from UOB to redevelop Pan Pacific Orchard
UOL Group has obtained its first green loan - a S$120 million three-year term facility from United Overseas Bank (UOB).
Proceeds will be used to partially finance the redevelopment of Pan Pacific Orchard into a lush green 347-room biophilic hotel, the mainboard-listed property developer said in a regulatory update on Wednesday.
Biophilic design is a concept which seeks to integrate nature with the built environment, creating a positive impact on occupants, UOL said.
Pan Pacific Orchard was closed for redevelopment in April 2018 and is targeted to open in 2021. When launched, the 23-storey hotel will offer rooms with eco-friendly features and three curated sky terraces with a green replacement ratio of more than 200 per cent.
The sky terraces are designed to be self-sustaining and feature a rainwater harvesting system and solar cells to light up the gardens and power the irrigation. The design of the terraces also optimises natural daylight and facilitates cross-ventilation, reducing overall dependency on energy use.
Other sustainable features of the hotel include a food waste management system that transforms kitchen waste into nutrient water for gardens, as well as water dispensers that eliminate the need for plastic bottled water.
In January 2020, the hotel was awarded the Building and Construction Authority's Green Mark Platinum - Singapore's highest environmental certification.
UOL Group chief executive Liam Wee Sin said the inaugural green loan demonstrates the company's commitment in greening the urban habitat. The green loan will also be the first to be given to a biophilic and zero-waste hotel in Singapore.
"The hotel's communal lush landscaped terraces will provide environmentally-friendly spaces that will promote social well-being and biodiversity," he said.
Mr Liam said Pan Pacific Orchard will contribute to the government's vision to transform Orchard Road into a green oasis in the city.
UOB head of corporate banking Singapore Leong Yung Chee said: "While the tourism industry is currently feeling the effects of Covid-19, UOL's move to redevelop the Pan Pacific Orchard will position Singapore well for a future where sustainable tourism is given more focus."
On Tuesday, UOL shares closed down S$0.02 or 0.3 per cent to S$6.62, while UOB shares closed down S$0.11 or 0.5 per cent to S$20.11.