SME Finance Solution

Green
Buildings
Finance

The core of our focus is providing you with finance for your formal business. We structure unique, individualised financing solutions using shareholder loans, equity, royalties and term loans – or any combination of these. We pride ourselves on having developed a range of finance products offering maximum flexibility to suit your specific needs.

Green Buildings Finance Programme

Get finance to build it green. Make it green.

We are proud to introduce our Green Buildings Finance Programme.

Our Green Buildings Finance Programme provides up to 100% property finance ranging from R500 000 to R50 million to established entrepreneurs with a viable business who want to invest in green buildings and achieve green building certification. We finance the purchase, construction, and/or retrofit of buildings if their designs are certified under an eligible green building certification. Our main focus is on industrial and retail spaces.

Benefits of the Green Buildings Finance Programme

Our Green Buildings Finance Programme provides the following benefits to the business owner, which lower the cost of greening and reduce the payback period for the greening spend:

  • 100% property finance cost.
  • 100% of the capital expenditure cost to green the building (capped at 4.5% of the total cost of the building). The rebate will be credited to the client’s property loan account.
  • 10% legal and transfer duties.
  • A 40% rebate of the capital expenditure to green the building (40% of 4.5%) credited to the property loan account on achievement of final certification.
  • A non-refundable grant of R150 000 to cover the cost of green building certification and audit.

Properties Qualifying For Green Buildings Finance

The following properties qualify for finance; the finance is subject to the business owner providing the eligible green building certification.

Hotels for which loan applications stipulate construction plans consistent with 1, 2, or 3-star hotels and 4-star rated business hotels, as defined by South African regulations, Zagat, TripAdvisor, Hotels.com or similarly well-established rating system.

All industrial buildings including warehouses – the assumption is that this building type does not have a luxury segment nor incorporate exclusions from the other building types.

The mixed use building must not include any of the excluded elements from the other building types, for example, residential townhouse development with property values above R4 200 000 (R4.2 million).

  • The adoption of green building practices is steadily increasing across the world.
  • The cost of going green is reducing.
  • Going green leads to reduced operating costs in the medium to long term.
  • Many in the property industry recognise the indirect benefits of going green: from improved wellness of building occupants, energy security to contributing to the environment.

Green buildings practices are not only about saving the planet.
Green buildings practices make business sense.

  • Offices with a value of R15 300 and below per square meter (m²).
  • Hospital and educational establishments focused on the domestic market only.

  • Residential townhouse development with a property value of R4.2 million and below.
  • Residential/apartment high rise development with a property value of R4.2 million and below.
  • Residential/detached development with a property value of R4.2 million and below.

  • Shopping centre developments with a value of R19 050 and below per square meter (m²).

Eligible Green Buildings Certifications

These green buildings certifications are eligible however documented evidence should be submitted for each: BREEAM, EDGE, GREEN STAR, LEED.

BREEAM certificate, together with BREEAM completed/approved credit checklist, and:

  1. Under ‘Ene 01 Credit: Reduction of energy use and carbon emissions’, a minimum of 6 credit points out of total 15 points must be achieved.

EDGE certificate

GREEN STAR certificate, together with Green Star completed/approved credit checklist, provided 20% improvement in energy is substantiated, and:

  1. For Green Star New Building & Major Refurbishments Retail, Office, Education & Public Building: under Ene-1 Greenhouse Gas Emissions Compliance route 1 – energy modelling, minimum of 4 credit points out of a total 20 points must be achieved.
  2. For Green & Major Refurbishments Multi Unit Residential: under Ene-1 Star New Building Greenhouse Gas Emissions Compliance route 1 – energy modelling, minimum of 3 credit points out of a total 10 points must be achieved.

LEED certificate, together with LEED completed/approved credit checklist, and;

  1. For LEED V3 BD+C 2009 New construction “New Buildings”: under ‘EAc1 Optimize energy performance’, a minimum of 5 credit points out of total 19 points must be achieved.
  2. For LEED V3 BD+C 2009 New construction “Existing building renovations”: under ‘EAc1 Optimize energy performance’, a minimum of 7 credit points out of total 19 points must be achieved.
  3. For LEED V4 BD+C : under ‘EAc1 Optimize energy performance’, a minimum of 8 credit points out of total 18 points must be achieved.
  4. For LEED V3 BD+C 2009 Core and Shell “New Buildings”: under ‘EAc1 Optimize energy performance’, a minimum of 7 credit points out of total 21 points must be achieved.
  5. For LEED V3 BD+C 2009 Core and Shell “Existing building renovations”: under ‘EAc1 Optimize energy performance’, a minimum of 9 credit points out of total 21 points must be achieved.
  6. For LEED Homes V4 EA Credit: under ‘Annual energy use’, a minimum of 15 credit points out of a total 29 points must be achieved.

What information is required to assess if a building qualifies for Green Buildings Finance?

We require the business owner to submit some information in order for us to assess whether their building qualifies to be financed under the Green Buildings Finance programme. Below is a list of information we typically require:

  • Architectural plans
  • Architectural sections
  • Architectural elevation
  • Architectural finishing schedule
  • Architectural door and window schedule/ Bill of quantities

Lighting schedule / Bill of quantities

  • Mechanical schedule / Bill of quantities

  • Sanitary schedule / Bill of quantities

Exclusions

We do not provide finance for:

  • Refinancing purposes, except in the cases where the finance will be used specifically to convert developments to meet the criteria for eligible buildings and to be certified under an Eligible Green Building Certification.
  • 5-star hotels and 4-star resort hotels.