Pro-invest a private equity real estate asset manager and investment firm and Aareal Bank AG, a leading international property specialist in the global real estate banking market, today announced a significant milestone in their commitment to sustainability and environmental stewardship.

Aareal Bank announced the first ever green loan governed by its Green Finance Framework in July 2021 with the financing of Pro-invest's Holiday Inn Express Macquarie Park in Sydney. Approximately two and a half years later, following a strategic refinancing initiative of Pro-invest Group’s Fund I portfolio, a total of five hotels within this funding forms Aareal Bank’s largest Green Loan for a hotel portfolio in the APAC region. Aareal Bank acted as the arranger and sole lender in the financing of this hotel portfolio.

This strategic financing initiative has enabled the refinancing of key properties in Pro-invest’s hotel portfolio, including Holiday Inn Express Brisbane Central, Holiday Inn Express Adelaide City Centre, Holiday Inn Express Melbourne Southbank, Holiday Inn Express Newcastle, and Holiday Inn Express Sydney Airport.

These properties have met the stringent criteria of Aareal Bank’s Green Finance Framework 2023, with all five hotels achieving or bettering the minimum required 4.5-star rating under the National Australian Built Environmental Rating System (NABERS) Energy rating scheme - exceeding the Bank’s previous threshold of 4.0 stars. This achievement underscores both companies’ work to reducing the environmental impact of the hospitality industry, while delivering returns to investors.

Thomas Adaemmer, Managing Director and Head of Asia-Pacific at Aareal Bank, remarked, “By prioritising green financing, we aim to encourage a shift towards more sustainable practices across industries. In this context, our partnership with Pro-invest Group stands out as a prime example of what can be achieved when financial institutions and industry leaders work together. Pro-invest's dedication to environmental excellence not only meets our stringent criteria but also sets a benchmark for the hospitality sector.”

Ronald Stephen Barrott, Founder and Chair of Pro-invest Group, added, “Our partnership with Aareal Bank is based on a shared commitment to pioneering sustainability in the real estate and hospitality sectors. It is a testament to how strategic financing solutions can align seamlessly with the environmental goals of forward-thinking organisations like ours. Through Aareal Bank's Green Finance Framework, we've been able to make considerable advancements in energy efficiency and reduce the environmental footprint of our properties, setting new benchmarks in sustainability. Our achievements within this framework underscore our collective progress towards transforming the built environment for the better.”

The financing agreement according to the framework established at Aareal Bank is subject to specific qualitative and quantitative environmental criteria. It contains associated covenants to which Pro-invest as the borrower has committed, and which are reviewed on a regular basis. Several design and development initiatives have been incorporated into each of the hotels to significantly reduce energy and water consumption. The energy efficient initiatives range from sustainably produced and energy-efficient equipment, to smart light- and air-conditioning management, occupancy sensors, and solar panel installation. These efforts, when deployed at Holiday Inn Express Melbourne Southbank were designed to successfully help the hotel achieve 5-stars, up 0.5-stars from its initial base design.

As Aareal Bank and Pro-invest Group continue to expand their green financing efforts, this milestone represents a significant contribution to the promotion of sustainable development and social change within the hospitality industry and beyond.

Pro-invest Group's investment strategy is rooted in impact-driven principles, with ESG considerations central to its operations and woven throughout the investment process, asset development, management, and guest experience. Embodying the ethos 'One Earth, Countless Experiences,' Pro-invest's commitment to sustainability and governance has been fundamental - shaping its approach and underscoring the link between sustainable practices, strong governance, and financial returns.

The success of this green financing initiative has been supported by rigorous assessments and advisories, with Sustainalytics providing a Second Party Opinion (SPO) confirming the alignment of Aareal Bank’s Green Finance Framework with the Green Loan Principles 2023.

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