Starhill Global REIT secures S$50M green loan for sustainable growth

SINGAPORE: Starhill Global REIT is making strides toward environmental sustainability as it secures an S$50 million green loan announced on Tuesday, Nov 21. The manager of Starhill Global Real Estate Investment Trust announced a five-year loan of S$50 million from DBS Bank, facilitated by HSBC Institutional Trust Services (Singapore) Limited, as first reported by The Edge Singapore. This green-focused loan is intended to replace the current financial arrangement with DBS Bank.

Effective from January 2024, the loan serves the dual purpose of meeting Starhill Global REIT’s operational requirements and financing eco-friendly initiatives to secure ‘green’ certifications for its properties. The manager of Starhill Global REIT emphasized, ‘This loan underscores our commitment to sustainability. It aligns with global environmental objectives and reflects our dedication to responsible business practices.’

Notably, the financial impact on Starhill Global REIT is expected to be minimal. Investors can be reassured that this loan won’t significantly alter their financial obligations.

However, it’s crucial to note the disclosure attached to this loan. In the event of a substantial change in control – such as the replacement of the current manager or a shift in ownership of the majority stakeholder in Starhill Global REIT – the bank retains the right to request the full repayment of the loan.

In a scenario where there’s a change of management, and Starhill Global REIT has borrowed the maximum amount, it could potentially impact a substantial sum – around S$1,390.5 million (excluding interest). It’s crucial to note that these are precautionary measures, and their occurrence is not predetermined.

In addition, it’s noteworthy that units in Starhill Global REIT closed at S$0.490 on Nov 22, 2023, reflecting an increase of 1.03% from the previous day’s closing price. /TISG