Salter Brothers, an Australian alternative investments manager, has furthered its expansion in the luxury retreat sector through a sustainability-linked loan provided by the Commonwealth Bank (CBA).
This financing arrangement underscores Salter Brothers’ commitment to integrating sustainability into its portfolio, which includes the recently acquired trio of Bannisters hotels located on the New South Wales North and South Coasts.
The unique terms of the sustainability-linked loan tie the interest rates to Salter Brothers’ achievement of specified environmental targets.
These targets focus on enhancing energy efficiency, reducing emissions, adopting onsite renewable energy solutions, and achieving sustainability certifications such as EarthCheck and Eco Tourism for their properties.
Paul Salter, managing director at Salter Brothers, highlighted the strategic importance of this partnership.
“We are proud to partner with CBA on this sustainability-linked loan which underscores our commitment to driving positive environmental outcomes through our investments,” Salter said.
Salter Brothers’ approach to sustainability is comprehensive, ranging from securing third-party green certifications to installing electric vehicle (EV) chargers at all hotels.
Mei McNamara (pictured above left), ESG manager at Salter Brothers, detailed their ongoing initiatives.
“We are also transitioning to a low-carbon economy across all our hotels,” McNamara said.
“Our retreats are already equipped with EV chargers, reflecting our dedication to sustainability. To further advance this commitment, the loan will support the expansion of our renewable energy generation and fund further energy efficiency projects.”
Chris Williams (pictured above right), CBA executive general manager of major client group, expressed satisfaction with the continuous collaboration.
“We’re delighted to continue our ongoing partnership with Salter Brothers by supporting their acquisition of the Bannisters hotels with sustainability at the forefront of their operations,” Williams said.
This deal not only highlights CBA’s role as a sole sustainability coordinator and lender but also reflects the growing trend in the hospitality sector to prioritise sustainable development.
This strategic finance initiative is part of a broader commitment by CBA to assist Australian businesses in achieving their sustainability objectives, supporting similar endeavors in the sector like Crystalbrook and Howard Smith Wharves.
Read the CommBank media release.
