QIC shopping centres use world-first green bond to reduce emissions, improve sustainability
Climate bond marks retail first
QIC Global Real Estate has become the world’s first retail property landlord to issue a Climate Bonds Initiative certified green bond to help it improve the energy efficiency and reduce the emissions of three major shopping centres in the QIC Shopping Centre Fund.
drop in emissions
We are proud to have achieved this world first for the retail property sector and deliver on the objectives of our investors to make meaningful and tangible progress towards enhancing our sustainability performance. With the rapid growth of green financing and impact investors globally, we will continue to progress opportunities to align QSCF’s capital management strategy, that seek to diversify its sources of funding, with QIC GRE’s ambition to drive sustainability initiatives across the retail portfolio we own and manage on behalf of our investors.Michael FattouhFund Manager, QSCF
As part of its broader commitment to support Australia’s emerging green bond market, the CEFC was a cornerstone investor in the green bond and secured a $30 million tranche of the issuance. QIC Global Real Estate (GRE) owns and manages a $22 billion portfolio of some 50 retail and commercial properties across Australia and the US on behalf of institutional investors. The QIC Shopping Centre Fund (QSCF) portfolio includes some of Australia’s premier retail assets, including super-regional and major-regional shopping centres.
The bond has been certified by the Climate Bonds Initiative under the Low Carbon Buildings – Property upgrade sector criteria. The $300 million green bond will fund initiatives to enhance the environmental performance for three of the retail assets within QSCF’s portfolio: Toowoomba’s Grand Central, the Robina Town Centre on the Gold Coast and Eastland in Melbourne. It will support a range of energy efficiency improvements including new building management systems, LED lighting, energy efficient air-conditioning systems and potential rooftop solar program.
Following the upgrade program, the three shopping centres are expected to reduce their carbon emissions by more than 35 per cent in the next three years. Australian shopping centres account for 36 per cent of commercial building energy consumption. Ongoing improvement in energy efficiency is vital to reducing the load on the electricity grid.