The Carbonlite Challenge rewards green developers with rebates that bring the net annual cost of their borrowing down as low as 4.99%.
Atelier has revealed the first project to be financed as part of its Carbonlite Challenge, a pilot programme that aims to incentivise the UK property sector to develop greener homes.
The Carbonlite Challenge, which offers loans to qualifying residential developments in England, Scotland and Wales, rewards green developers with rebates that bring the net annual cost of their borrowing down as low as 4.99%.
The project is the development of six sustainable and energy efficient homes in South London, and includes green roofs, planted with meadow flowers.
The South London development, designed by Craftworks and delivered by The Edition Group, combines a low-carbon, sustainable design with high energy efficiency, helping it meet the standards of RIBA’s 2030 Climate Challenge.
The six family homes will feature a cross-laminated timber structure, airtight construction technology and triple glazing.
According to Atelier, modern methods of construction (MMC) – in which much of the structure is fabricated off-site – will keep waste to a minimum.
In a deal brokered by SPF Private Clients, Atelier will lend £10m to finance the development.
Upon successful completion of a post-construction Carbon and Sustainability assessment, the developers will receive a rebate of over £200,000.
Chris Gardner, co-founder of Atelier, said: “The global net zero targets agreed at COP26 can seem distant and abstract.
"But building greener, lower carbon homes can make a difference today – and that’s what the Carbonlite Challenge is all about.
“We’re using the power of global capital to reduce the cost of development finance and change the way Britain builds homes for the better, and forever.
“The Edition Group’s scheme in Dulwich is a stellar example of the type of homes we want to help developers build.
"They’re beautiful to look at and will blend seamlessly into their environment, and they use clever design and sustainable materials to keep carbon use down – both during construction and when they’re being lived in.”
Daniel O’Neil, director at SPF Private Clients, added: “Atelier’s Carbonlite Challenge is unique – it offers developers substantial and decisive incentives to encourage developers to build more sustainable homes.
“The Edition Group’s development in Dulwich Wood will be a perfect example. It’s just three weeks since Carbonlite launched, and in that time Atelier has agreed terms on a £10m loan with a proposed rebate in excess of £200,000.
“Coupled with Atelier’s ability to execute deals swiftly, such significant rebates aligned with the finance being proposed under the Carbonlite Challenge make this product one of the most competitively priced in the market today.”
