• Green Financing – Greenlighting Green Investment into Green Real Estate

    23 October 2018

    (23 October 2018, Hong Kong) Cushman & Wakefield, a leading global real estate services firm, and US Green Building Council (USGBC), jointly released the report: Green Financing – Greenlighting Green Investment into Green Real Estate on 2018 Greenbuild China. From a global perspective, green financing is progressively being utilised as a catalyst in the transition towards a greener economy as it provides the necessary financial support for the development of green projects, including green real estate. According to the report, to preserve energy and natural resources, people, governments and corporations around the world are now cooperating more closely together to generate more sentience, establish “green” associated bodies and associations, ratify laws and provide green financing.

    Given the built environment’s massive involvement in the diminution of natural resources and hastening of climate change, many more property owners and users, today, are also convivial to the idea of going “green”, and many have incorporated green technology on and in their buildings to garner energy and natural resources and/or conserve energy and natural resources.

    Ahead in the short to medium term, the built environment will continue to be one of the foremost emitters of greenhouse gases and will be a large contributor to global warming. As a greater number of people, governments and businesses understand this, so more newly built buildings (and existing buildings) around the world, and in China, will be obliged to install green technology systems that both garner and preserve energy and natural resources in the future.

    Mr Shaun Brodie, Cushman & Wakefield’s Senior Director, Head of Occupier Research, Greater China said: “Given the steadfastness of many governments around the world, including the Chinese government, to environmental sustainability and the advancement of green building development, we can anticipate a growing proportion of the built environment to be green in the future. In conjunction with this, from the commercial real estate viewpoint, as more building owners and space users start to comprehend the many advantages that certified green commercial real estate can provide, including financial benefits, so this mainspring will make sure green commercial office, retail, industrial and hotel space is set to increase in popularity in the years to come.”

    Mr Andy To, Managing Director, North Asia of USGBC said: “As a major development plan for China, ‘Green Development’ has created a good basis for the green finance industry. While green finance is promoting the vigorous development of green assets, green building, as a kind of green assets, not only benefits from the development of green finance, but also promotes relevant upstream and downstream enterprises and industries, such as land, energy, materials and buildings to accelerate their own sustainable development, from investment to project formation, forming a virtuous circle.”

    Mr Alton Wong, Cushman & Wakefield’s Head of Advisory Services, Valuation and Advisory Services, Greater China, introduced Cushman & Wakefield’s smart building and green finance services platform. This platform consists of real estate and financial professionals from a number of fields, including senior engineers, various green/healthy building certification specialists, project and construction management consultants, property/facilities management specialists, chartered financial analysts (CFAs) and chartered surveyors. In addition to our own comprehensive platform across all service lines of business, the experts in various fields provide a full range of solutions to achieve successful investment, project management, leasing, property management and exist strategy within the life cycle of every single real estate project.

    Mr Wong said: “Our platform was established with the goal of providing clients with a full spectrum of solutions and relevant services in different stages of real estate projects through a comprehensive platform across all service lines in the fields of smart building, real estate and green finance, consequently achieving property value enhancement, energy conservation and emission reduction, reduction of financing and operating costs and increase of the overall return on investment.”

    China has firmly established itself as a global leader in green financing, with both domestic policies and international leadership bringing real progress. For example, China has become the second largest green bond issuer globally. In 2017, a total of 181 bonds amounting to RMB248.6 billion (US$36.4 billion) were issued in China.

    Source: Climate Bond Initiative, China Central Depository & Clearing Co., Ltd, HSBC, British Embassy Beijing, Cushman & Wakefield Research

    Sean Zhang, Cushman & Wakefield’s Director & Head of Financial Advisory Services, China said: “With China’s built environment in mind, as Quasi-REITs and two green CMBSs have been efficaciously launched, we envisage more green real estate projects in the region to exploit of these types of green financing mechanisms in the future.”

    Please click here to download the full report.


    To learn more, visit www.cushmanwakefield.com.hk or follow LinkedIn.




    More Industry News
    Knight Frank profits jump 14% to £166.7m led by resilient global markets
    Results for the year ended 31 March 2018: Group turnover up 10% to £525.9m (2017: £476.2m) Group profit before tax up 14% to £166.7m (2017: £145.7m ) Strong balance sheet with net assets at £262.9m (2017: £224.7m) Asia-Pacific operations in Knight Frank delivered record turnover and profit, with the firm’s businesses in Singapore and Hong Kong achieving their best years [...]
    Hong Kong Institute of Construction is opened to inherit professional skills
    (3 October 2018,Hong Kong) Hong Kong Institute of Construction (HKIC), a member organisation of the Construction Industry Council (CIC) successfully held its grand opening ceremony at HKIC – Tai Po Training Ground. Eight officiating guests included Mr. Paul CHAN, Financial Secretary, Mr. Michael WONG, Secretary for Development, Ir HON Chi-keung, Permanent Secretary for Development [...]
    Imagine the cities of 2030 at MIPIM Asia
    (27 September 2018, Paris)–World-renowned property summit MIPIM Asia 2018 will offer a glimpse into the cities of the future, with this year’s event carrying the future-facing theme “Invest in a better tomorrow”. More than 900 property leaders from across the continent will gather to wonder how coming generations will live and work, at the leading industry event, taking place in Hong [...]
    New supply on the peak will drop to 13 units per year over the coming three years
    (28 September 2018, Hong Kong) – The completion of luxury units on the Peak will drop significantly to an average of 13 units per year between 2018 and 2020, compared to 36 units per year in the previous three years, according to JLL’s Residential Sales Market Monitor released today. New supply on the Peak will only contribute 2% to the total luxury supply in Hong Kong over that [...]
    Henning Larsen brings Scandinavian ethos to “The Springs” of Shanghai
    Creating an urban oasis in the center of the city  The Hong Kong office of Henning Larsen designed The Springs for Tishman-Speyer, an American developer, with a holistic approach: Thinking beyond the present to future needs; integrating the local culture and community; and building a healthy and livable green habitat in the city. The project began construction on 12th July 2018 and [...]
    Gammon is appointed Management Contractor for the M+ Project
    (7 September 2018, Hong Kong) Gammon Construction Limited (“Gammon”) was appointed by the West Kowloon Cultural District Authority (WKCDA) today as the Management Contractor to oversee the completion of the M+ project. (按此浏览简体中文版) Thomas Ho, Chief Executive of Gammon, said, “Gammon is delighted with the opportunity to play a key role in facilitating the sustainable [...]
    Space Matrix, Asia’s leading workplace design firm, makes strategic acquisition in China
    (4 September 2018, Hong Kong) Space Matrix, a Singapore-based workplace design and build consultancy, announced today its expansion into China through the successful acquisition of the Asian head office of Swedish interior design and construction company, Muraya. This strategic acquisition is part of Space Matrix’s vision to expand its footprint across Asia. With its entry into [...]
    Spaces Actively Expands Business in Hong Kong Opening Second Location in East Kowloon
    (21 August 2018, Hong Kong) – Creative workspace provider Spaces announced today the opening of its new location at 133 Wai Yip Street, Kwun Tong, providing enterprises with 37,500 square feet of innovative office space across three floors, including the rooftop floor. The opening of Spaces Wai Yip Street signifies a rapid expansion in Hong Kong and comes a month after the opening of its [...]
    HKIUD Conference 2018 discuss new strategies and design guidelines to address HK’s ageing population
    On 22 June 2018, the Hong Kong Institute of Urban Design (HKIUD) held the HKIUD Conference 2018 to discuss Hong Kong’s ageing population problem and arrive at new solutions. The event was held at the Happy Valley Racecourse Hong Kong Jockey Club, and was also livestreamed on the Internet for the public. We are honoured to be supported by sponsors including Bank of China (Hong Kong) Private [...]