Gecina, the largest European Office REIT has signed with ING France a €150m sustainability performance-linked loan with its margin depending, among others, on its Environmental, Social and Governance (ESG) performance measured by its GRESB Rating (Global Real Estate Sustainability Benchmark). This is the first Commercial Real Estate GRESB reflected into a sustainable improvement loan.
Progress will be measured through GRESB by benchmarking Gecina’s performance against its peers through a customized package of different ESG indicators. The concept for sustainability financings heralds a new approach by encompassing not just environmental, but also social and governance aspects.
With a score of 93/100 Gecina ranks fourth among office REITs globally.
Méka Brunel, Chief Executive Officer of Gecina, said: “Sustainability is a priority for Gecina and we are constantly looking for improving our sustainability performance, as reflected in our new 2020 CSR roadmap. We believe that incorporating sustainability metrics and actions into every aspect of our business is key to accelerate our transformation, and to create value for our customer, stakeholders and for our industry in general. With this sustainable improvement loan, Gecina demonstrates its strong CSR convictions by integrating social and environmental concerns on an equal footprint with financial targets. CSR is fully integrated in our strategy and our business. Future is about leveraging the power of this integration and sustainable finance is a new step in this direction.”
Karien Van Gennip, CEO for ING in France, said: “We are delighted to bring an innovative sustainability offer to support and stimulate our clients. Gecina is clearly a front runner on ESG (Environmental, Social and Governance) matters. We are proud to implement the first sustainable improvement loan based on GRESB rating with a leader in the commercial and residential real estate sector. At ING, we have demonstrated a strong commitment to sustainability over the past years within various sectors. We are convinced that sustainable finance will be a new standard to our industry and will continue to find innovative ways to support and stimulate our clients on their sustainability journey.”
Sander Paul van Tongeren, Co-founder and Managing Director, GRESB said: “We are greatly encouraged that ING France and Gecina took another important step in sustainable finance by offering a financing with margin linked to GRESB ESG performance data. This commitment by both Gecina and ING France provides clear opportunities for real estate companies and funds looking to enhance ESG performance and directly benefits those with strong commitments for improvement.”