The Commonwealth Bank recently served as joint sustainability coordinator and sole financier on Cbus Property’s Green Development Loan, supporting the construction of a next-generation 21-storey commercial office tower in Adelaide’s CBD.

The Green Development Loan for Cbus Property’s 83 Pirie Street development is targeting a 5.5 star NABERS Energy rating and a 6 Star Green Star design rating, and is designed to be net-zero carbon in operation. EY provided assurance on the deal, confirming the transaction aligns with the Asia Pacific Loan Market Association’s Green Loan Principles.

CBA’s Managing Director of Sustainable Finance and ESG, Charles Davis, said: “We are incredibly proud to support Cbus Property with one of its first sustainable finance issuances, and one that recognises a new development that is targeting some of the highest sustainability standards in the commercial property sector.

“Commercial property constructed today will serve Australians for decades to come so it is critical to embed the highest sustainability, energy efficiency and green elements in the design to ensure this infrastructure supports the transition to a net-zero economy of the future.”

Cbus Property’s Chief Executive Officer, Adrian Pozzo, said that successfully executing the Green Development Loan in accordance with the business’ new Sustainable Finance Framework reinforced its industry-leading sustainability program, including managing the highest-rated NABERS Energy office portfolios in Australia in 2020 and 2021, and ranking in the top 1 per cent in the Global Real Estate Sustainability Benchmark (GRESB) in 2021.

“Cbus Property will drive the utilisation of this framework in our upcoming developments and explore opportunities to underpin our existing portfolio, while delivering on our commitment to achieve our sustainability targets and develop responsible investments for our members,” Mr Pozzo said.

Property and building construction accounts for more than one third of global energy consumption and offers one of the largest opportunities for low-cost carbon abatement, according to the International Energy Agency.

About Cbus Property:

Cbus Property is a wholly owned subsidiary of Cbus, the industry superannuation fund for the construction, building and allied industries, with funds under management exceeding $68 billion at 31 December 2021. Cbus Property has responsibility for the strategic performance and management of all aspects of the Cbus direct property investment business, including major investments and developments in the commercial and residential sectors. The property portfolio currently exceeds $6.0 billion, with a further $5.0 billion of development work ‘in hand’, making Cbus Property one of Australia’s leading integrated property investors. Cbus Property has extensive experience undertaking sustainable initiatives within Australia and is committed to using its considerable experience in the investment and delivery of developments that provide a benchmark for both economic and environmental sustainability.