CIB issues $70M loan to CAPREIT for green renovations
The Canada Infrastructure Bank (CIB) has committed to providing a $70-million loan to real-estate company CAPREIT.
The firm will use the money to finance deep energy and decarbonization upgrades to selected buildings across the country. The company expects the work to install new energy conservation equipment will benefit residents living in approximately 60 multi-unit residential buildings, and 14,000 suites.
The projects are expected to result in an estimated 40 per cent average decrease in greenhouse gas (GHG) emissions across the retrofitted properties.
Planned building upgrades include energy recovery among various mechanical systems, installation of high-efficiency electric heat pumps, as well as building automation systems, lighting retrofits and sub-metering.
“We’re thrilled to have been able to partner with the CIB and participate in their Building Retrofits Initiative, an important program in place to benefit both residents as well as the environment through projects that wouldn’t have been financially feasible otherwise,” said CAPREIT President and CEO Mark Kenney. “This loan will enable us to proceed with retrofitting approximately one-third of our existing Canadian apartment portfolio, which will significantly reduce its carbon emissions annually.”
The CIB loan, which is part of its Building Retrofits Initiative, helps to close economic gaps associated with deep energy retrofit projects that are not typically economically viable with traditional sources of capital.
The loan contains tenant protections which prevent rent increases and the imposition of additional utility burdens on existing tenants.
“Working with CAPREIT to fund deep energy and decarbonization retrofit projects will help improve the living experience for thousands of their residents in Canada,” said CIB CEO Ehren Cory. “The CIB’s loan will also help to tackle the reduction of a key source of greenhouse gas emissions, which is essential to contributing to the achievement of Canada’s climate change goals.”
To date, the CIB has invested more than $1.2 billion in sustainable building retrofits across the country.