SINGAPORE - A consortium led by Perennial Holdings has secured a $3 billion green loan to finance the redevelopment of 8 Shenton Way.

This is the largest real estate green loan in Asia to date.

Perennial, DBS and OCBC on Thursday said the new building at 8 Shenton Way is “committed to secure” the Green Mark Platinum certification, which is the Building and Construction Authority’s top sustainability standard for buildings in Singapore.

The two banks acted as green loan advisers for the transaction, and are among eight banks that will provide the primary arrangement and initial underwriting for the loan.

The new building will reuse the entire existing foundation to minimise material use and environmental impact, and be built with sustainable materials. It is expected to feature over 10,000 square metres of green spaces, which will be irrigated through the harvesting of rainwater.

Formerly the AXA Tower site, 8 Shenton Way is set to become the tallest building in Singapore, with a height of 305 m spanning 63 storeys. Upon its completion in 2028, the building will include retail, office, hotel and residential components.

The redevelopment is the first under the Urban Redevelopment Authority’s Central Business District (CBD) Incentive Scheme, which aims to incentivise the conversion of older office developments in the CBD into mixed-use developments. THE BUSINESS TIMES