AXA Tower Redevelopment Obtains S$3bil Green Loan
SINGAPORE – Deemed as Asia’s biggest green property loan to date, a consortium led by Perennial Holdings has clinched a S$3 billion green loan to fund the redevelopment of AXA Tower, reported The Business Times on Thursday afternoon (17 November, SGT).
The redevelopment, which will be called 8 Shenton Way, is poised to emerge as Singapore’s tallest building with a height of 63 storeys or 305 metres. The mixed-use commercial property will comprise office space, retail, hotel, and residential units. It is expected to be completed come 2028.
On Thursday, Perennial, OCBC, and DBS jointly announced that 8 Shenton Way is “committed to secure” the Green Mark Platinum certification, the highest sustainability standard for Singapore buildings granted by the Building and Construction Authority (BCA).
Notably, OCBC and DBS acted as green loan advisers for the deal. They are also among the 8 financial institutions that will provide the primary arrangement & initial underwriting for the green real estate loan.
As for 8 Shenton Way, the new building will reuse AXA Tower’s entire foundation to reduce material usage and environmental impact. The new building, which will be constructed with eco-friendly building materials, will also come with more than 107,639 sq ft of green spaces that will take advantage of rainwater harvesting.
8 Shenton Way is the first redevelopment under Singapore’s CBD Incentive Scheme, which grants bonus area if the owner converts ageing office towers in the central business district (CBD) into mixed-use projects.