Brookfield raises green building war chest

George Sell George Sell Uploaded 28 August 2019

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US: Brookfield Property Partners has raised US$250 million to develop and refurbish green property projects.

Brookfield sold $250 million of redeemable perpetual preferred shares on the Nasdaq stock exchange. The shares pays a fixed dividend of 6.4 per cent, and the company can buy the shares back at a fixed price if it wants to.

The proceeds of the share sale will be used to develop or redevelop new and existing projects that have received or are expected to receive LEED Silver or higher, NABERS, BREEAM or equivalent certification. The money can also be used to help tenants hit sustainability targets or generally improve the energy efficiency of the properties Brookfield manages.

“We strive to minimise the environmental impact of our operations and believe that using resources in a responsible manner preserves our environment and results in significant operational cost savings,” said Brookfield Property Partners CEO Brian Kingston.

Brookfield, an investor in the Airbnb-Niido homesharing brand, and owner of the SACO and Locke serviced apartment brands, is the latest big investor to raise green capital on the markets. Earlier this month Australia’s Queensland Investment Corp. said it had raised US$204 million through a green bond issue, which will be used to make its shopping centres more sustainable.

The issuance by Brookfield is the first time a real estate company has issued green preference shares.

 

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