Pro-invest Group is pleased to announce that Aareal Bank’s first green loan has been awarded to one of its fund assets. Aareal Bank’s green loan is governed by its “Green Finance Framework”, with the Bank acting as Arranger and Sole Lender providing a mortgage loan of c. A$39 million to the Holiday Inn Express Sydney Macquarie Park hotel. The financing agreement according to the Framework established at Aareal Bank in H1 2021 is subject to a host of quantitative and qualitative environmental criteria. The Framework has been reviewed through Sustainalytics verifying that the Framework is credible and impactful, aligning with the 4 core components of the Green Bond Principles 2018 and Green Loan Principles 2020. The agreement also contains associated covenants to which the borrower has committed, and which are to be reviewed regularly.
Holiday Inn Express Sydney Macquarie Park serves as Pro invest Group’s first operational hotel which commenced trading in April 2016 with the hotel featuring several design, development and operational initiatives focused on sustainability. Environmentally friendly initiatives range from sustainably produced or energy efficient equipment, smart light and air conditioning management, improved housekeeping and laundry routines, and leads up to the systematic recording and auditing of consumption data. The hotel has achieved a post construction >4.5-Star rating for both Energy and Water under the National Australian Built Environmental Rating System (NABERS) for 4 consecutive years.
As a hotel developer, owner and operator, Pro-invest Group has the ability to challenge conventional thinking, benefitting from the ability to adapt to change, try new things and build its hotels to high sustainability standards. We are delighted that this is being recognised by initiatives such as the Finder Green Awards.
Since opening in March 2019, Holiday Inn Express Newcastle has consistently achieved sustainability “highs”, including holding a 5-star NABERS Energy & Water rating. The hotel features many sustainability features & initiatives, including Interface carbon neutral carpets which alone translates into 35 metric tons of carbon dioxide being retired.
Together with Pro-invest Group’s other IHG hotels, Holiday Inn Express Newcastle also champions IHG’s A Greener Stay initiative that enables guests to opt out of housekeeping services if they stay 2 or more nights. This allows them to make a positive contribution to the environment through saving energy and water, amongst reducing wastage and limiting labour costs.
We look forward to seeing the Holiday Inn Express Newcastle hotel and its team enjoy many more sustainability successes as the hotel continues to go adopt further sustainability initiatives.
Australia-based asset management and investment firm, Pro-invest Group (“Pro-invest”), has launched the Pro-invest Asia-Pacific Distressed Hospitality Fund (“Fund III”). Pro-invest aims to raise AUD500 million from institutional investors, sovereign wealth funds and family offices to invest in luxury, upper-upscale and upscale full-service hotels. In doing so, they hope to prop up the sector and provide operating capital as it rebuilds from the pandemic, especially after international borders reopen. The group believes that unprecedented market conditions created by the pandemic have created an opportunity to make value-added investments in these income-producing high-end assets. Outside of Australia and New Zealand assets, Fund III will seek Asian opportunities in Singapore, Japan, South Korea and Thailand. These higher-end assets experience higher revenue declines during market downturns, but will typically enjoy higher growth rates during market recoveries. Fund III will focus on acquiring hotels in markets with high barriers to entry and attractive supply-demand fundamentals. The group sees that there is the possibility to acquire assets below replacement cost, providing further upside for investors. Currently, Pro-invest is managing more than USD2 billion in real estate assets, including commercial assets as well as hotels operating under well-known brands like Holiday Inn Express, Hotel Indigo and voco.
In addition to Pro-invest’s already strong collection of NABERS Energy and Water ratings, the Holiday Inn Express Adelaide City Centre hotel has achieved 5-stars in both NABERS Energy and Water. As of 7 May 2021, there are 11 hotels across Australia with Energy &/or Water NABERS ratings at/above 5-stars, 5 of which are operated by Pro-invest Group.
Pro-invest is dedicated to improving its hotels’ energy and water efficiencies, and believes that NABERS is one of the best tools to verify its hotels performance. This was one of the key messages that was communicated by the Director of Operations, Pro-invest while he spoke on the Sustainability Panel at AHICE, hosted in Adelaide, Australia.
Pro-invest was joined by the likes of QCC Collection, Crystalbrook Collection, Dalman Architecture and LIXIL Water Technology, with the panel moderated by Axia Asset Management.
Holiday Inn Express Brisbane Central has officially been awarded with a 5-star Energy and 5.5-star Water NABERS Rating!
Across its portfolio – extending beyond Fund I to its Managed Accounts too, Pro-invest achieved high rated NABERS ratings in the last 12 months, remaining dedicated to verifying its ESG performance even in the midst of COVID-19 impacted date and occupancy disruptions.
Holiday Inn Express Brisbane Central positions as the only hotel to currently actively hold a 5.5-star NABERS Water rating, as per the NABERS Rating Register accessed 26 March 2021.
The Holiday Inn Express Brisbane Central’s NABERS ratings now joins Pro-invest’s growing >5-star NABERS collection, supported through the achievements by Pro-invest’s Holiday Inn Express Newcastle and Holiday Inn Express Sydney Macquarie Park which respectively hold 5-star NABERS Energy and Water ratings, along with Pro-invest’s managed account, the Sebel Canberra Civic, which too has obtained NABERS ratings. Sebel Canberra Civic achieved a 5.5-star NABERS Energy rating (the highest in Australia for hotels at time of writing) and a 5-star NABERS Water rating.
Efforts to have the Holiday Inn Express Adelaide City Centre hotel NABERS rated are well underway.
DISCLOSURE: At Pro-invest Group, we are committed to understanding our environmental performance and obtaining independent certification to verify our environmental endeavours across our portfolios. We are proud to have consistently obtained such verifications year on year since 2017 with our cornerstone Fund 1 asset. However, we recognise that 2020 has delivered a trading year that was far from usual, with COVID-19 impacting much of the operational data. As such, these current NABERS results should be viewed in the context of having been achieved during other than “standard/normal” trading conditions and with a revised calculation methodology. Moving forward, having dealt with the challenges of the past year, we remain committed to implementing our ESG strategies, and playing our part in supporting the hotel industry progress towards a more sustainable future through the adoption of external verification mechanisms.
Pro-invest Group had the pleasure of sharing its knowledge and insights on Environmental Social Governance (ESG) to university students in the Sustainable Management class at The Hotel School Australia. Pro-invest Group’s ESG Coordinator shared hotel ESG related insights to the university students, detailing the various initiative that Pro-invest Group champions for its own hotel investment portfolio. The talk covered a host of initiatives, monitoring mechanisms, external verifications and reporting standards and frameworks, emphasising the increased importance of actual and transparent ESG practices for investors globally. The talk on ESG was well received and Pro-invest looks forward to continuing to share its knowledge and stance on ESG well into the future.