Loan supports property projects that are built sustainably
More property developers have been investing in sustainable buildings as well as initiatives, data from Westpac NZ found.
From the bank’s data regarding the environmental and social assets that were being funded by its Sustainable Business Loan, it was found that Westpac has provided more than $440 million to property projects that were either built sustainably or will have positive outcomes for the environment or the community.
According to Reuben Tucker (pictured above left), Westpac NZ managing director of institutional and business banking, the bank has been investing in healthy and affordable social housing, energy efficient homes and offices, and projects that increase climate resilience.
“We recently announced that we’re committing to lend at least $1bn over the next three years to social and affordable housing. And doing our bit to power a lower emissions and resilient economy is incredibly important to us, so we’re also focused on financing initiatives that deliver better environmental outcomes,” said Tucker.
The Sustainable Business Loan aims to incentivise investment in assets or projects that help improve the environment, aid businesses in adapting to climate change, and deliver positive social outcomes. Through the loan, businesses are able to receive discounts on the loan interest margin if the project meets the criteria and the customer can give the necessary validation.
“We knew there was a demand for this kind of solution and the uptake from the property sector in particular has been fantastic,” said Tucker.
Some of the businesses that have utilized the Sustainable Business Loan are Wellington’s Nightingale Group, Modus Community Housing, and Mansons TCLM.
Simon Nightingale (pictured above right) from the Nightingale Group expressed the importance of building homes that were warm, dry, and energy efficient.
“We firmly believe that affordable housing should also be healthy housing. We’ve had a long relationship with Westpac and were really pleased that the bank recognised both the social and economic value of our project,” said Nightingale.
With the Sustainable Business Loan expected to gain more ground, Tucker said that the support for the development of sustainable properties will continue to be a focus for Westpac.
“We have an opportunity to reimagine how we deliver healthy, affordable housing and environmentally friendly buildings to all New Zealanders. It’s a privilege to be working with the companies invested in this space,” he said.
