The leading retirement operator, which is owned by EQT Infrastructure, says it has successfully extended and upsized its loan facilities, securing an AUS$1.5 billion Sustainability-Linked Loan (SLL).
It states the financing aligns with Levande’s growth strategy to develop new retirement villages. Their media release states:
This financing aligns with Levande’s growth strategy to develop new retirement villages tailored for Australia’s aging population. Importantly, the SLL implements annual performance targets for three ambitious Key Performance Indicators (KPIs) that target impactful sustainability outcomes:
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Greenhouse Gas Emissions Reduction: Levande will work to decrease emissions in alignment with the international Science Based Targets Initiative’s (SBTi) new Buildings Sector criteria (from FY2026);
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Sustainable Design Integration: New development activities will target incorporating sustainable building design practices; and
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Resident Wellbeing: Levande commits to enhancing the wellbeing of its residents with target outcomes that surpass community averages.
To incentivise these targets, Levande will benefit from a lower interest rate if the targets are met, but will face higher rates if it falls short, reinforcing accountability at every step.
Kevin McCoy (pictured), Chief Executive Officer of Levande, said, “In our efforts to protect the environment for future generations, we’ve built on our ambition embedded in our Sustainability Strategy, spanning actions from reducing greenhouse gas emissions, to integrating sustainable design standards into new village developments. Most notably, we’ve set a wellbeing KPI for our residents, putting the ‘S’ in ESG at the forefront to drive an even greater impact.”
It is believed Levande is not looking to take over established villages, despite Aveo, owned by Brookfield, and RetireAustralia, owned jointly by Infratil and NZ Super, being for sale, and Keyton wanting to offload its 10 retirement villages in Western Australia,
Tobias Küng (pictured), a Partner within EQT Infrastructure’s advisory team, said, "As a purpose-driven organisation, we focus on sustainable growth across our portfolio, and Levande’s commitment to integrating environmental and social objectives into its core operations strongly exemplifies this vision.”
In July, Levande stated it had bought two development sites in Castle Hill, in Sydney's Northwest, and was seeking amended approval for 217 independent living apartments in a midrise village format, plus adjoining clubhouse facilities; and in Highton, opposite the Waurn Ponds Shopping Centre in Geelong, Victoria, for about 120 independent living units, a clubhouse and communal facilities. The two deals follow Levande’s purchase of a 1.75ha site at Bentleigh East, about 15km south-east of Melbourne’s centre, earlier this year, for 290 units across four buildings, including a village centre. Its development pipeline stands around $2 billion.
Levande engaged DNV Business Assurance Australia to provide a second-party opinion on the alignment of the SLL with the Sustainability Linked Loan Principles (2023) published by the Asia-Pacific Loan Market Association. The SLL was arranged with the support of ANZ and Westpac as Mandated Lead Arrangers and Bookrunners, in addition to Joint Sustainability Coordinators. Commonwealth Bank of Australia also acted as a Joint Sustainability Coordinator and Mandated Lead Arranger.
