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The Canada Infrastructure Bank (CIB) has reached financial close on a $70 million loan to CAPREIT to finance deep energy and decarbonization upgrades at selected buildings.
The projects are expected to result in the significant reduction of greenhouse gas (GHG) emissions annually, with an estimated 40 per cent average decrease in emissions across the retrofitted properties. 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. Installation of new energy conservation equipment is planned to benefit residents living in approximately 14,000 suites.
“Working with CAPREIT to fund deep energy and decarbonization retrofit projects will help improve the living experience for thousands of their residents in Canada. 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,” said Ehren Cory, CEO, Canada Infrastructure Bank.
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. CAPREIT is a leader in affordable rental housing in Canada, and invests heavily in its properties to make homes safer, healthier and reduce energy consumption.
To date, the CIB has invested more than $1.2 billion in sustainable building retrofits across the country.
“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. 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. Through the CIB, we’re pleased to be contributing to the achievement of Canada’s climate-change commitments while also making meaningful progress on our own, and we’re excited to continue this vital energy conservation work. CAPREIT remains proud to be a provider of affordable housing for Canadians,” said Mark Kenney, president and CEO of CAPREIT. |
