The first green bond from an Australian company has been released by Stockland, paving the way for better buildings and more investment in Green Star projects, says the Green Building Council of Australia (GBCA).
Stockland, one of Australia’s largest property developers, launched the €300 million green bond on Thursday, with proceeds to be invested in green building projects that achieve a minimum 4 Star Green Star rating from the GBCA.
“A Green Star rating is the mark of quality in Australia, and we applaud Stockland’s decision to tie its green bond to Green Star outcomes. Using metrics that are relevant to the Australian market will deliver true best practice outcomes that the market understands and trusts,” says the GBCA’s Chief Operating Officer, Robin Mellon.
Stockland currently has the highest number of Green Star-rated shopping centres in Australia, and completed the first Green Star-rated retirement living village, Affinity in Perth. Its largest-ever residential community project, Caloundra South on the Sunshine Coast, is registered to achieve a Green Star – Communities rating.
Stockland announced that the green bonds will fund investment in the development and redevelopment of Green Star-rated retail, commercial, residential and retirement living projects.
The Value of Green Star research has found that buildings with 4 Star Green Star ratings, on average:
- produce 40% fewer greenhouse gas emissions when compared to standard practice for new construction
- produce 60% fewer emissions when compared to the average performance of existing stock
- consume 40% less energy than average new buildings
- consume 43% less potable water than average new buildings
- recycle 85% of construction and demolition waste.
“Assets with 4 Star Green Star ratings, representing ‘best practice’ in sustainable building design and construction, have been proven to deliver higher returns on investment than non-green buildings, attract higher rents, better employees, more grants and partnerships, and are symbols of corporate commitment to leadership in sustainability,” Mr Mellon explains.
“Stockland’s current portfolio of 19 Green Star projects ranges from 4 Star Green Star shopping centres and retirement living developments, to 5 Star Green Star offices and clubhouses, through to Stockland’s own 6 Star Green Star headquarters in Sydney.”
Stockland’s Managing Director and CEO, Mark Steinert, has said that the green bond will enable the company to further invest in leading-edge sustainable projects.
“Green bonds will encourage investors to consider potential assets on the basis of their long-term sustainable returns. Stockland’s leadership will help us build a more sustainable property industry,” Mr Mellon concludes.