Hong Leong-led consortium secures $692 mil green loan from DBS, OCBC for Tengah’s first private mixed-use development
A Hong Leong Holdings-led consortium, comprising joint project partners GuocoLandLimited and CSC Land Group, has obtained a $692 million green funding from DBS Bank and Oversea-Chinese Banking Corporation (OCBC) to subsidize a “nature-aligned” urban property development project in Tengah.
Chew Chong Lim, group head of real property and shipping, aviation, logistics and transportation, institutional banking at DBS, says: “Climate shift is expediting, and modifying how we live, work and play. In this developing landscape, incorporating nature into metropolitan development is of growing importance to construct more sustainable and resilient townships where people can thrive and appreciate nature.”
Tengah– Singapore’s first brand-new Housing Board town ever since Punggol more than two decades ago– is envisioned as a car-lite, eco-friendly town reaching 700ha. When fully established, it will provide about 42,000 new homes.
Schedule for release in 2026, the Hong Leong Holdings venture will be Tengah’s primary exclusive mixed-use housing development. Found in Tengah Garden Avenue, it intends to develop a vibrant residential property development making up around 860 homes together with integrated retail services.
Some nature-related features of the project consist of “native planting strategies”, “eco-friendly passages” of split landscaping and incorporated eco-friendly spaces, and “sustainable smart technologies” to reduce waste.
DBS functioned as support lender and main green loan consultant, providing $484 million, with the excess given by OCBC.
The loan, form according to globally recognized Green Loan Principles, are going to finance the project’s green infrastructure and ecological integration efforts, according to a June 3 announcement.
Loke Kee Yeu, Hong Leong Holdings’ general manager (projects), says: “As the initial developer to commence Tengah’s maiden private green housing development, we aim to anchor and increase an eco-conscious nonpublic real estate neighborhood whilst partnering with similar investors and sustainable financiers such as DBS and OCBC to bring economic savings and benefit residents in this new smart town area. With the international shift to a low-carbon economy, we are reinforcing our role as a trusted developer by inserting smart green practices across our building procedures for a more sustainable future.”
