AMP Capital’s Quay Quarter Tower refurbishment in Sydney and a major water treatment plant in regional Victoria are among the sustainable projects that have tapped into Sustainable Australia Fund’s range of loans.
Sustainable Australia Fund chief executive officer Scott Bocskay said that the company offers fixed-rate, long-term loans for environmental upgrades, covering up to 100 per cent of the capital costs, paid back through council rates.
“There’s nothing else like this on the market today,” Bocskay told the audience at Tomorrowland19 I, human in a Spotlight appearance.
The company recapitalised the fund earlier this year and there’s now $230 million available to deploy into South Australia, New South Wales and Victoria through the funding mechanism.
The capital fund will cover environmental upgrade components of the project, becoming part of the developer’s capital stack, reducing costs and providing greater return on equity
There’s now three different loan products that target different needs for commercial customers, including agriculture, commercial office buildings, tourism, commercial and industrial properties.
The Capital Fund is designed for repositioning assets, such as an office building, for instance, into a hotel. The loan will cover environmental upgrade components of the project, becoming part of the developer’s capital stack and reducing the cost for the developer and giving them a greater return on equity.
The Solar Fund product is up to 20 years of fixed interest finance for solar and other behind the meter technologies such as batteries.
The Upgrade Fund covers other environmental upgrade projects, such as water recycling, LEDs and HVAC upgrades and is focused on agriculture, commercial and industrial sectors.
One of Bocskay’s favourite projects through this fund is a waste water treatment plant in regional Victoria, with the loan going towards 200 tonnes of worms at a desalination plant.
This allowed 120,000 kilolitres of water to be diverted back into the irrigation channel, and meant the untreated water no longer had to be trucked 250 kilometres to be safety disposed of.
“This is a demonstration of perfect alignment where the company benefited from the loan and invested in 15 equivalent full time jobs, and there’s also the public and social good.”