United Engineers converts loan to fund green residential property project
The loan conversion to a green-orientated residential development will spawn substantial energy and water savings, and could be a forerunner of other environmental developments
United Engineers Limited of Singapore has successfully converted a S$333 million (US$244.85 million) loan into one of the first green loans earmarked for a residential property project in Asia. The company secured the loan in 2018 from DBS, Oversea-Chinese Banking Corporation and United Overseas Bank.
The green loan, announced on May 6, will be used to develop a land parcel along Dairy Farm Road into a green residential property comprising about 450 residential units. Plans for amenities such as childcare centre, supermarket, food court and retail shops are also in the pipeline.
The property’s green features will centre on concepts such as climate responsive building design, energy performance, resource stewardship, as well as smart and healthy building.
The energy efficiency components of the development include lift and escalator systems equipped with sleep mode technology, air conditioning system with five-ticks rating under the Singapore energy labelling scheme for residential units and energy efficient lighting. To achieve resource efficiency, the project involves the installation of water fittings under the PUB water efficiency labelling scheme.
The project also subscribes to sustainable construction, which involves optimizing concrete usage and use of sustainable building systems for more than 50% of the constructed floor area, and to sustainable products by using green products certified by approved local certification bodies and products, including the use of low volatile organic compound paints.
The green features are expected to yield annual residential per household energy savings of up to 473,206 kilowatt-hours, which will represent a 20.6% greater saving than the average Singapore standards. The annual commercial energy savings are projected at up to 681,961 kilowatt-hours, or 25.8% higher than the average Singapore standards.
Residential water savings, on the other hand, are projected at up to 21,302 cubic metres per year, with the commercial water savings predicted to approach 2,658 cubic metres.
The green loan has been issued in line with United Engineers Dairy Farm green loan framework, which has been assured by consultant KPMG in Singapore to be in line with the green loan principles issued in 2018 by the Loan Market Association and the Asia-Pacific Loan Market Association.
United Engineers’ group managing director Roy Tan calls on more companies to consider environmental sustainability and climate change benefits as part of their overall building plans. “We believe in operating and growing our business in an environmentally responsible manner,” he adds.
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