Property developer Argent has secured a £69 million loan facility on behalf of the King’s Cross Central Limited Partnership (KCCLP) from HSBC UK (acting as Green Loan Coordinator) and NatWest to support the development of a sustainable residential development in King’s Cross.
The funding will be used to deliver Cadence, the latest residential development at King’s Cross. Cadence will offer 163 apartments, including 60 intermediate affordable rent apartments, managed by Pocket Living. These 60 units will offer design-led rental homes for middle-earning local workers who positively contribute to their community. These homes contribute to the 43 per cent of affordable housing which has been delivered across the King’s Cross development.
Cadence meets the Loan Market Associations’ Green Loan Principles which facilitate and support environmentally sustainable economic activity, such as the reduction of emissions or energy usage, or reduction in the use of scarce natural resources. The loan follows a similar £400 million loan for King’s Cross in 2018 which the first of its kind in the UK used to deliver a commercial development.
Michael Lightbound, CFO of Argent, said: “From the outset, sustainability has been the foundation of King’s Cross. We were proud to receive the first Green Loan for a commercial development in 2018, and since then we have continued to deliver on our sustainable and environmental commitments. With our second Green Loan for Cadence we are delighted to be building on our long-term relationship with HSBC UK and NatWest.”
Cadence will become part of a thriving residential neighbourhood at King’s Cross, which has created nearly 1,500 new homes since 2010. Cadence will meet recognised energy efficiency standards. All apartments will benefit from low carbon heating, hot water, and cooling from the King’s Cross District Energy Networks, one of the most sophisticated in the UK. Combined with energy efficient design of the building, this will reduce carbon emissions by 28 per cent when compared to the typical home. Low carbon forms of travel will be encouraged and facilitated, with the building only providing nine parking spaces compared to 300 cycle spaces.
It will also provide 572m2 of biodiverse green roof space which forms part of the estate’s Living Landscape strategy developed by the London Wildlife Trust. When King’s Cross development is fully complete 40 per cent of its roof space will be green, with over 600 species of plants, and 400 new trees, forming a vital wildlife corridor for North London.
David Stephens, HSBC UK’s Head of Corporate Real Estate, London, added: “We are delighted to support King’s Cross with its second Green Loan facility. King’s Cross has an established and proven track record in developing sustainable buildings and this is core to the ongoing strategy for the estate. This funding demonstrates the continued demand for green financing and the focus on sustainability across the real estate sector.”
Rob King, HSBC UK’s Head of Sustainable Finance, added: “This loan further cements Argent’s position as a leader in green property development in the UK. It’s great to be able to support our clients in placing sustainability at the heart of what they do. The funding demonstrates the Bank’s commitment and dedication to the green loan market, which we are determined to support and develop. The deal is part of our commitment to provide $100 billion in sustainable financing and investment by 2025.”
NatWest Real Estate Director Mark Pope added: “At NatWest, we have set out an ambition to play a leading role in helping to address the climate challenge and this deal, which is our first green loan in the residential sector, shows how we are supporting the move to a low carbon economy. This new development will deliver high quality, energy efficient and sustainable housing, with lower carbon emissions than a typical housing development. We are proud to continue supporting King’s Cross in achieving the vision of long-term regeneration of the neighbourhood.”
The 67-acre King’s Cross estate The King’s Cross estate is owned by the King’s Cross Central Limited Partnership, comprised of Argent, Hermes and pension fund AustralianSuper. AustralianSuper owns a 67.5% stake in KCCLP.