StorHub Leads Sustainability in Self Storage
StorHub Self Storage Group (StorHub), the leading self-storage platform in Asia, has proudly announced the successful acquisition of SGD180 million in sustainability-linked loan (SLL) from CIMB and UOB, marking a significant milestone in the Asian self-storage industry.
This strategic move not only establishes StorHub as a trailblazer within the sector but also underscores its unwavering commitment to long-term sustainability.
The loan structure incorporates a sustainability-linked margin adjustment, intricately linked to two key performance indicators (KPIs) evaluating the environmental footprint of StorHub's impressive portfolio of 13 properties across Singapore.
Founded in 2003 in Singapore, StorHub initially focused on consolidating its position as a market leader within the Singaporean self-storage market. However, the company has witnessed remarkable growth over the past four years, especially since its acquisition by Warburg Pincus.
During this period, StorHub has been instrumental in acquiring and developing nearly 440 storage facilities, transforming itself into Asia's preeminent self-storage platform. The company's facilities now span an impressive 6.4 million square feet of Gross Floor Area (GFA) and offer over 70,000 storage units in Australia, Greater China, Japan, Malaysia, Singapore, and South Korea.
Mike Hagbeck, Group CEO of StorHub, commented, "As the vanguard of the self-storage industry in Asia, we take immense pride in spearheading a sustainability-driven movement within our sector. This loan exemplifies our steadfast commitment to constructing a sustainable future and underscores the confidence that CIMB and UOB have placed in us to effect positive change for the environment. We firmly believe that prioritising sustainability will ultimately yield value for our customers, investors, partners, and communities we serve."
CIMB and UOB played pivotal roles in facilitating this groundbreaking transaction, serving not only as lenders but also as joint sustainability advisors and coordinators. CIMB further acted as an agent and security agent in this transformative endeavour.
Mr. Victor Lee, CIMB Singapore CEO, expressed his congratulations to StorHub, saying, "We extend our warm congratulations to StorHub for successfully securing their inaugural sustainability-linked loan. We are proud to have played an advisory role in their partnership, actively contributing to their sustainability initiatives and ESG best practices.
"As the facility and security agent, we have worked closely with StorHub to gain valuable insights into their operations and funding requirements, ensuring a seamless process. CIMB Singapore remains committed to pioneering sustainability-focused financial solutions and supporting our clients and society as a whole on the journey to a more sustainable future."
Ms. Lim Lay Wah, Group Head of Sector Solutions Group and Global Financial Institutions Group at UOB, echoed these sentiments: "We firmly believe that the financial industry bears the responsibility of ensuring the region's long-term progress by engaging stakeholders and facilitating their journey toward sustainability. We are delighted to be the provider of StorHub's first sustainability-linked loan, a testament to their proactive stance in forging a more sustainable future. UOB remains steadfast in supporting our clients in their ESG endeavours, leveraging our network, solutions, and industry expertise."
StorHub's dedication to embedding Environmental, Social, and Governance (ESG) principles into its business operations, investment processes, and stewardship remains unwavering. The company is committed to promoting a sustainable future for its employees, customers, and stakeholders throughout the region.
Many of StorHub's projects showcase innovative sustainability features such as solar-powered buildings, energy-efficient LED lighting, AI-enhanced HVAC systems for optimised energy consumption, green roof systems, and electric vehicle charging stations.
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