Centuria NZ Industrial Fund secures $117m green loans

Centuria New Zealand has adopted a new Green Loan Framework (The Framework) for its multi-asset Centuria NZ Industrial Fund (CNZIF or ‘Fund’), to support the issuance of Asia Pacific Loan Market Association (APLMA) aligned Green Loans against eligible projects that meet qualifying sustainability credentials.

The Green Loans provide the Fund’s unlisted investors with annual savings on interest costs provided eligible assets continue to meet qualifying standards. On 5 May 2026, the Fund made its first draw down of green lending totalling $117.2 million representing 36% of the Fund’s total debt.

The Green Loans were secured from a syndicate of lenders including ASB Bank, Westpac New Zealand, ANZ Bank New Zealand Limited, and Bank of China Auckland.

Mark Francis, Centuria NZ CEO, said, “Our team has managed and developed a wide range of properties during the past 30 years but this is the first time we have leveraged our ESG credentials with a formal green loan framework for an improved financial outcome. Securing these preferential loans benefits not only Centuria’s investors but also the wider community.”

Four properties within the CNZIF portfolio meet eligible project criteria set by the terms of the Green Loan, which aligns to the New Zealand Green Building Council (NZGBC) guidance on green buildings ratings for sustainable finance. KPMG provided a second party opinion on the alignment of the Framework and associated Green Loans to the APLMA Green Loan Principles.

The Green Loans are underpinned by a requirement to maintain a minimum 1.0x green debt ratio, meaning that for every dollar value of qualifying green assets the Fund can borrow a dollar of green lending provided it remains in line with its overarching lending covenants and the Framework.

In total, CNZIF’s 18-property portfolio is worth c.$711.2 million and the properties eligible for sustainable finance are worth $117.2 million.

The issuance of these Green Loans forms part of a recent $325 million loan facility extension for CNZIF.