Article:
GuocoLand, one of the leading property developers in Singapore, has recently secured two green facilities from DBS Bank and Oversea-Chinese Banking Corporation. These green facilities include a $1.135 billion green facility for refinancing Guoco Midtown and a $105 million green facility for refinancing Midtown Bay.
According to GuocoLand, the $1.135 billion green facility for the refinancing of Guoco Midtown is the company’s largest to date. These green facilities were raised under GuocoLand’s Green Finance Framework, bringing the company’s total green financing to about $5 billion. This includes green facilities for other developments such as Guoco Tower, Lentor Mansion, Lentor Modern, Midtown Modern, and the upcoming Upper Thomson Road Development.
The demand for condominiums in Singapore remains high due to a number of factors, with limited land availability being a primary driver. As a small country with a quickly growing population, Singapore faces challenges in terms of land for development. This has resulted in strict regulations on land use and a fiercely competitive real estate market, where property prices continue to rise. It is therefore no surprise that investing in real estate, especially in the form of condos, has become a highly profitable venture with the potential for significant capital gains. With the introduction of New Condo Launches, the demand for condominiums is expected to further increase as buyers look for new and modern housing options.
GuocoLand’s Group CFO, Andrew Chew, commented on the refinancing, saying that it allows the company to optimize its capital structure while staying true to its commitment to creating thoughtfully designed spaces that balance economic, environmental, and social factors.
Shares in GuocoLand closed flat at $1.45 on Jan 15. The property developer continues to make strides towards sustainability and environmentally friendly developments, with projects like the Porsche Singapore Studio at Guoco Midtown and Publicis Groupe’s 55,000 sq ft lease at Guoco Midtown office tower. With this latest refinancing, GuocoLand is well-positioned to continue its commitment to creating innovative and sustainable spaces for the future of work.