News: DBS anchors SGD 692 million green loan for Hong Leong Holdings’ flagship nature-aligned development in Singapore’s first “forest” town Tengah
Singapore (Press Release) -- A Hong Leong Holdings Limited-led consortium, comprising joint venture partners GuocoLand Limited and CSC Land Group, today announced it has secured an SGD 692 million green loan to finance a nature-aligned urban development project in Tengah – billed as Singapore's first eco-friendly and car-lite "forest" town[1] that focuses on sustainable living. The loan, structured in accordance with internationally recognised Green Loan Principles, will fund the project's green infrastructure and ecological integration efforts. DBS acted as anchor lender and sole green loan advisor, contributing SGD 484 million, with the remainder provided by OCBC.
As Singapore's first "forest estate"[2], Tengah represents a key milestone in the nation's urban evolution. Bounded by a 100-metre-wide and five kilometre-long forest corridor[3], Tengah – Singapore's first new Housing Board town since Punggol more than two decades ago – is envisioned as a car-lite, eco-friendly town spanning 700 hectares. When fully developed, it will provide about 42,000 new homes set within a landscape designed to reconnect people with nature.
Green by design: Building with nature at its core
Slated for launch in 2026, the Hong Leong Holdings project will be Tengah's first private mixed-use residential development. Located in Tengah Garden Avenue, it aims to create a vibrant residential development comprising approximately 860 homes along with integrated retail amenities. Features include:
- Biodiversity-enhancing design – Layered landscaping and integrated green spaces form ecological corridors that support urban biodiversity and help mitigate the heat island effect.
- Ecological integration – With its proximity to Tengah's future forest corridor that connects to the Central Catchment Nature, the project will incorporate measures to reduce environmental impact during the development phase.
- Restorative landscapes – Native planting strategies promoting strengthening of ecological networks, habitats restoration and biodiversity, making nature an integral part of daily life.
- Sustainable smart technologies – Integration construction with digital innovation through tools like Building Information Modelling and cloud-based coordination platforms to streamline processes, improve efficiency, enhance collaboration and reduce waste throughout the project lifecycle.
The project aims to demonstrate how private-sector partnerships and sustainable finance can bring national climate and liveability goals to life – contributing to creating urban spaces that are smart, resilient and in harmony with the natural environment.
Loke Kee Yeu, Hong Leong Holdings General Manager (projects) said: "As the first developer to embark on Tengah's maiden private green residential development, we aim to anchor and grow an eco-conscious private housing community while partnering with like-minded investors and sustainable financiers such as DBS and OCBC to bring economic savings and benefit residents in this new smart town area. With the global shift to a low-carbon economy, we are reinforcing our role as a reputable developer by embedding responsible green practices across our building processes for a more sustainable future."
Chew Chong Lim, Group Head of Real Estate and Shipping, Aviation, Logistics and Transportation, Institutional Banking, DBS, said: "Climate change is accelerating, and changing how we live, work and play. In this evolving landscape, integrating nature into urban development is of growing importance to build more sustainable and resilient townships where people can thrive and enjoy nature. DBS is pleased to support Hong Leong Holdings by providing financing and green loan advisory, to bring this milestone project to life and contribute to more sustainable places for people to live and connect with nature."
[1] https://www.straitstimes.com/multimedia/graphics/2024/08/tengah-centralised-cooling/index.html
[2] https://www.nparks.gov.sg/-/media/cuge/ebook/citygreen/cg14/cg14_06.pdf
[3] https://www.hdb.gov.sg/about-us/history/hdb-towns-your-home/tengah/live-green-at-tengah
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