Singapore’s Guocoland Secure Over $650 Million Green Facility

Singapore’s leading real estate group GuocoLand Limited has secured a $650.44 million green club facility (green facility) to finance the development of its Upper Thomson Road (Parcel B) site.

The 32,023.7 sq. m., 99-year leasehold site, which is located in a predominantly landed housing neighbourhood, was awarded in April 2024 to GuocoLand and its joint venture partner Hong Leong Holdings Limited.

Residents of the future development will enjoy unobstructed views of the Central Catchment Nature Reserve and sheltered access to the Springleaf MRT station on the Thomson East Coast Line.

The group will adopt a biodiversity-sensitive approach to develop a 941-unit residential development. Targeted to be launched in 2025, the development will comprise five 25-storey towers, and a part of the former Seletar Institute, which was originally built as Upper Thomson Secondary School, will be conserved.

When completed, the development will be GuocoLand’s second development to attain the Building and Construction Authority’s Green Mark Platinum (Super Low Energy) award with Maintainability badge.

In May 2024, GuocoLand’s Lentor Mansion became its first project to be awarded the Green Mark Platinum (Super Low Energy) award with Whole Life Carbon and Maintainability badges.

Dora Chng, Residential Director of GuocoLand, said that their upcoming development at Upper Thomson is an extension of the company’s place making strategy to uplift neighbourhoods.

“We are excited to bring GuocoLand’s signature living concepts to Springleaf new town that will promote wellness and biodiversity. Just as how we have positioned Lentor Hills estate into a coveted residential area, we are confident this project will do the same,” Dora said.

Over $2.84 Billion in Green Financing

United Overseas Bank Limited (UOB), Overseas-Chinese Banking Corporation Limited (OCBC) and DBS Bank Ltd. (“DBS”) served as the arrangers for GuocoLand’s latest green facility, which was raised under its Green Finance Framework (Framework).

Established in 2023, the Framework enables GuocoLand and its subsidiaries to enter into Green Finance Transactions to fund and refinance projects that will deliver environmental and social benefits that support its sustainability objectives.

To date, GuocoLand has secured more than $2.84 billion of green financing and this includes $747.88 million green facility to refinance the commercial component of its flagship integrated development Guoco Tower and a $382.85 million green facility for the development of Lentor Mansion, both secured in 2023.

The total figure also includes $537.49 million and $560.53 million green facilities for the development of Lentor Modern and Midtown Modern (including the commercial components of both projects), respectively.

Guocoland’s Chief Financial Officer Andrew Chew said that his company was committed towards the development of projects that balances environmental and social responsibility while creating a positive impact for our stakeholders. The company will continue to explore innovative capital management initiatives to support our development projects and sustainability aspirations, he added.

Earlier Projects

Prior to the Upper Thomson Road (Parcel B) site, GuocoLand has developed a series of new high-end developments in the Bugis district – namely Midtown Modern and Midtown Bay – which are part of its Guoco Midtown mixed development.

GuocoLand also positioned the Lentor Hills estate as a highly sought-after premium residential estate when it launched the 605-unit Lentor Modern, the estate’s first and only integrated mixed development directly connected to Lentor MRT station.

This was followed by the 598-unit Lentor Hills Residences and the 533-unit Lentor Mansion which are being jointly developed with partners.

Demand for quality developments in the area remains robust – Lentor Modern is almost fully sold, while to date, Lentor Hills Residences and Lentor Mansion have sold 93% and 86% of the respective total units.