Funding for sustainability upgrades to commercial assets available.
Did you know that over a quarter of Australia’s emissions are contributed by the built environment? There is much being done in new developments to promote sustainability. However, many older buildings perform poorly when compared to today’s standards.
Sustainable Australia Fund provides a win/win for non-residential building owners and the environment: Environmental Upgrade Finance. It uses a mechanism created by legislation in Victoria, New South Wales, and Queensland to provide loans for environmental and sustainability upgrades, which are repaid through council rates.
Making repayments through council rates comes with a range of benefits, including:
- Long term, fixed rate loans of up to 20 years
- The ability to share in the benefits and rate payments with tenants by agreement
- Finance being tied to the property, not the owner, meaning the loan and repayments can transfer to incoming owners if you sell the property
- No mortgage or directors’ guarantees after any interest capitalisation period
- Works alongside existing finance, however less expensive than mezzanine finance or equity, reducing the overall cost of capital.
For major construction projects that involve renovation, refurbishment, or asset repositioning, Sustainable Australia Fund has developed a new version of the program called Capital Fund.
By including Capital Fund in the capital stack, developers can minimise risk, replace more expensive mezzanine debt or equity, drive greater returns, and substantially increase environmental performance.
Yarraport, an accredited EnviroDevelopment Professional company, originates loans in partnership with Sustainable Australia Fund for Capital Fund.