The loan will fund Industry Lanes, a mixed-use office and retail project in Richmond, Melbourne
Salta, a property development and asset management group, has secured the first NAB Green Finance loan for commercial real estate (CRE) in Victoria.
The loan will fund Industry Lanes, a mixed-use office and retail project in Richmond, Melbourne that meets low-emission standards. Industry Lanes qualified for the loan due to its energy-efficient design and focus on reducing emissions.
According to NAB group executive for corporate and institutional banking Cathryn Carver (pictured above left), there was growing demand for sustainable commercial properties as the sector accounted for about 25% of electricity use and 10% of Australia’s carbon emissions.
“The technologies needed to enable decarbonisation in the CRE sector are available today,” Carver said. “Industry Lanes is a prime example of how the property industry can make real progress with its decarbonisation strategies.”
Nikki Paton (pictured above right), director of environmental, social, and governance (ESG) at Salta, stated that their company’s commitment to ESG principles was being positively received by stakeholders.
“We are pleased to have received this finance from NAB and look forward to continuing to prioritise the development of ESG-focused buildings,” Paton said.
Salta has been a member of the Green Building Council of Australia since 2007 and requires all new projects over 4,000 sqm to achieve a 5-star Green Star rating. The Industry Lanes project, co-owned by Salta and Abacus Group, is 98% leased.
A report by consultancy firm EY highlighted that Australia’s real estate sector is essential to achieving net zero, as buildings designed today will shape future emissions. New regulatory standards for sustainability and climate-related financial information, effective from Jan. 1, 2025, are expected to drive greater accountability and influence market valuations of green buildings.
EY’s research also found that 92% of corporate tenants were more likely to remain in properties with strong sustainability credentials, with many willing to pay a premium for such features.
Industry Lanes incorporates various sustainability features, including air-cooled heat pumps, rainwater collection systems, CO2 sensors for improved ventilation, and motion-sensor lighting in public areas.
The development also reused materials such as steel and brick from pre-existing assets. These initiatives have helped the project achieve a 5-star Green Star rating from the Green Building Council of Australia and a 1-star Fitwel rating, recognising its impact on human health and well-being.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
