CIB to provide $70 million financing to CAPREIT to retrofit 60 multi-residential buildings
02 May 2024 - 7:00AM
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. Installation of new
energy conservation equipment is planned to benefit residents
living in approximately 14,000 suites.
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.
The retrofitting of existing buildings, which represent a
sizeable proportion of GHG emissions across Canada, is critical to
the achievement of the country’s climate-related plans and
targets.
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.
"Working with CAPREIT to fund deep energy and decarbonization
retrofit projects will help improve the living experience for
thousands of their residents in Canada," commented Ehren Cory,
CEO, Canada Infrastructure Bank. "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."
"As a leader in affordable rental housing, CAPREIT is also
working to reduce the carbon footprint of its properties across the
country," added The Honourable Sean Fraser, Minister of Housing,
Infrastructure and Communities. "The energy retrofits to CAPREIT’s
rental properties will reduce energy costs and make them safer and
more comfortable for their tenants across Canada. Through the CIB’s
Building Retrofits Initiative, CAPREIT is doing its part to help us
achieve our goal of net-zero by 2050."
"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," said Mark Kenney, President
and CEO of CAPREIT. "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."
Media Contacts:
Canada Infrastructure Bankmedia@cib-bic.ca416-347-3358
CAPREITmedia@capreit.net