StorHub Self Storage Group (StorHub) has secured a $180 million sustainability-linked loan (SLL) from CIMB and United Overseas Bank U11 (UOB).
The loan features a sustainability-linked margin adjustment, tied to two Key Performance Indicators (KPIs) of the environmental performance of StorHub’s 13 properties in Singapore, says the company on Sept 25.
In response to queries by The Edge Singapore, StorHub says the two KPIs involve reducing “occupancy-adjusted electricity consumption intensity” and obtaining green building certification for a number of its properties.
According to StorHub, the SLL is a first in Asia’s self-storage industry. Under an SLL facility, debtors enjoy lower interest rates if they meet pre-determined sustainability performance targets.
StorHub’s targets are to “reduce electricity consumption y-o-y” across its Singapore properties and to obtain LEED for Building Operations and Maintenance (O+M) Certification, using the Arc reporting platform, for seven of its properties in the first year.
StorHub was founded in 2003 in Singapore. In 2019, CapitaLand divested the business to Warburg Pincus for some $185 million.
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The company says it has accelerated its growth since the acquisition. “Over that period, the company has acquired and developed approximately 440 stores, becoming Asia’s leading self-storage platform with facilities spanning over 6.4 million sq ft of gross floor area and more than 70,000 storage units across Australia, Greater China, Japan, Malaysia, Singapore and South Korea.”
Mike Hagbeck, group CEO of StorHub, says the loan exemplifies “steadfast commitment to building a sustainable future” and “reflects the trust that CIMB and UOB have placed in us to make a positive impact on the environment”. “We believe that prioritising sustainability will ultimately create value to our customers, investors, partners and communities.”
