Oxford and Investa secure 100% green financing for Investa Gateway Offices portfolio

A$1.2 billion refinancing represents firms' largest green debt transaction to date.

September 29, 2022

Investa, in conjuction with Oxford Properties Group ('Oxford'), has announced the completion of its largest green debt transaction to date, with the refinancing of Investa Gateway Office (IGO)’s Syndicated Debt Facility, for $1.2 billion, certified by the globally recognised Climate Bond Initiative (CBI).

Commenting on the arrangement Merran Edwards, Chief Financial Officer at Investa said, transitioning IGO to 100% green debt was a major milestone and further cemented Investa’s leadership in securing real estate green finance in Australia.

“We are committed to ensuring our funding supports positive, measurable environmental outcomes and exceeds the expectations of IGO investors, Oxford Properties Group (‘Oxford’) and Link Real Estate Investment Trust Hong Kong (‘Link’), who are very interested in how we embed sustainability in both our financing decisions and management of our assets.”

“Since 2017, Investa has cumulatively closed more than $3.4 billion in green debt, with the IGO transaction taking us to 82% green debt across Investa’s core portfolio.”

“Following this refinance, we are well on our way to achieving our target of 100% green finance across our core funds by 2025,” said Ms. Edwards.

Alec Harper, Head of Australia at Oxford Properties commented: “Leveraging Investa’s Australian office management expertise, today’s announcement is further testament to Oxford and Investa’s commitment to creating economic and social value through real estate.”

“Driven by a focus on innovative projects, technology and decarbonization, Oxford continues to take industry-leading positions to drive sustainable solutions in our buildings. This approach has resulted in a 37% reduction in carbon intensity across our global portfolio since 2015—surpassing our public goal of 30% by 2025 ahead of schedule.”

“Achieving 100% green debt across IGO validates its place at the leading-edge of sustainability, aligning the portfolio with our global Net Zero by 2050 target,” Mr. Harper said.

Greg Chubb, Chief Operating Officer – International at Link added: “As the first Hong Kong business enterprise, and the first property company in Asia to enter the green financing market back in 2016, Link has always been at the forefront of incorporating ESG into our investment decisions and asset management. We are happy to have located strategic partners like Oxford and Investa, who share the same vision and commitments to developing green, healthy and smart buildings together.”

“While over one-third of our outstanding bond and loan facilities are tied to our sustainability performance, the newest green financing programme for the IGO portfolio, further expands Link’s capability for achieving sustainability across our multi-market portfolio.”

“The arrangement also gets us one step closer to achieving our Net Zero 2035 targets and fulfilling our mission of building vibrant sustainable communities around our properties in different regions,” said Mr Chubb.

In February this year, Oxford and Investa announced Link had entered into arrangements to acquire a 49.9% stake in IGO, a $2.3bn portfolio comprising five prime office buildings in key CBD locations in Sydney and Melbourne. All buildings have a 5 to 5.5 Star NABERS energy rating, and the Barrack Place development achieved a 6 Star Green Star Design and As Built rating and a WELL Platinum building (core and shell) rating.

Investa announced its Transform Tomorrow sustainability strategy in May 2022 which set out its pathway to transform the business, its buildings and communities.

Margot Black, General Manager, Corporate Sustainability, Investa said: “The IGO green loan, certified by the Climate Bond Initiative, aligns the portfolio’s finance with the environmental performance of the buildings, as they progress towards the target of net zero scope 1 and 2 emissions by 2025".

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