Concert’s Tapestry at Victoria Harbour has secured the first green loan from HSBC Bank Canada. (Courtesy Concert)

Concert Properties has secured the first loan under HSBC Bank Canada’s Green Loan Principles-aligned financing program, for its 15-storey Tapestry at Victoria Harbour seniors living development in the B.C. capital.

The $71.5-million financing, announced this week, represents a conversion of Concert’s construction financing on the property into the bank’s green financing program.

“Tapestry at Victoria Harbour demonstrates our commitment to quality, sustainability and creating communities that inspire and enhance the wellness of an active aging resident,” said Brian McCauley, the president and CEO of Vancouver-based Concert Properties, in the announcement. “We are dedicated to making a positive contribution to the economy, society and the environment.

“We are pleased to be selected for HSBC’s green loan program. It recognizes Concert’s commitment to achieving greater sustainability in our portfolio.”

Additional terms were not announced, but the bank and Concert said the conversion is a result of the project’s strong sustainability features which will reduce its carbon output and energy usage.

About Tapestry at Victoria Harbour

Tapestry at Victoria Harbour is being constructed to use 33 per cent less energy than a comparable building, projected to have an overall energy use intensity of 118 Kwh per square metre per year. This complies with ‘Step Three’ of the B.C. Energy Step Code.

Concert is also targeting certification LEED Gold certification under the Canada Green Building Council program.

The HSBC Bank Canada lending product is designed to support sustainability leaders in financing projects with strong environmental benefits, including combatting climate change. Launched in 2019, HSBC says the program “demonstrates the bank’s continued leadership in sustainable finance and the value that its sustainability expertise can bring to its clients” in the announcement.

HSBC says it is the top underwriter of green, social and sustainable bonds globally. In 2017, the bank committed to provide and facilitate $100 billion of sustainable financing by 2025 to clients to develop or install clean energy and lower-carbon technologies.

HSBC Bank Canada’s contribution was over $1 billion in 2019 and included participating in $6.4 billion of green and sustainable bond transactions for Canadian clients.

Green loans result of increased ESG focus

“We are proud to help our long-standing client, Concert Properties, extend their sustainability leadership into the area of finance and pioneer the first green loan in Canada,” said Linda Seymour, head of commercial banking for HSBC Bank Canada, in the announcement. “Our customers are becoming increasingly focussed on ESG issues, and we are committed to offering them products that help them invest in creating a lower-carbon economy.”

Tapestry at Victoria Harbour is an active living community development comprising 42 condominiums and 133 residential rental suites, along with supporting amenity and service space. It also includes a small ground-floor retail component of about 3,800 square feet along the street front.

Construction began in 2018, and the project is now nearing completion. The building features an elongated four-storey podium with rooftop patio and amenities, as well as the integrated tower at one end of the site.

The building is adjacent to Concert’s The Q apartments in Victoria.

Concert recently completed its sustainability framework, which lays out a 30-year plan to make it a leader in sustainable buildings, including “aggressive” carbon emissions reductions. Concert has more than 20 buildings that have achieved LEED certification and/or Tier-2 under the Toronto Green Standard, or Step-3 under the Province of B.C. Energy Step Code.

About Concert, HSBC Bank Canada

Founded in 1989, Concert is a nationwide company that develops rental apartments, condominium homes and retirement communities, acquires and develops office, industrial and infrastructure properties and is involved in property management.

HSBC Bank Canada, a subsidiary of HSBC Holdings plc, provides three global business lines: commercial banking, global banking and markets, and wealth and personal banking.

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in Europe, Asia, North America, Latin America, the Middle East and North Africa. With assets of US$2,918bn as of 31 March 2020, HSBC is one of the world’s largest banking and financial services organizations.