MUFG Bank, Ltd. has executed a non-recourse loan for the acquisition of a green building (Yokohama Nomura Building) by PPFA Japan VI TMK (“TMK”) established under an Asia-focused private real estate fund advised by Morgan Stanley Real Estate Investing (MSREI), the global private real estate investment management arm of Morgan Stanley.
This loan is one of the few examples of a private fund utilizing sustainable finance in Japan. Morgan Stanley Capital K.K. and Nomura Real Estate Asset Management Co., Ltd. are appointed as asset managers of TMK.
As a global leader in the financial industry, Morgan Stanley is strongly committed to achieving a sustainable society, pledging to reach the goal of carbon neutrality by 2022, and to eliminate net carbon emissions from its investment and loan portfolio by 2050.
Nomura Real Estate Asset Management, as a member of the Nomura Real Estate Group, is working to promote real estate investment management operations that incorporate ESG considerations. Their Sustainability Policies are based on the philosophy that consideration of ESG is essential to increasing investor value in the long term.
The Yokohama Nomura Building is an office building located in Minatomirai, Nishi-ku, Yokohama City, Kanagawa Prefecture, and has obtained green building certification for its high environmental performance, including the introduction of a cogeneration system that uses waste heat from a generator for air conditioning.
The Loan is executed in accordance with the Green Loan Framework established by Nomura Real Estate Asset Management and Morgan Stanley Capital. Sustainalytics, a leading independent ESG ratings firm, has provided a second party opinion stating that the project will lead to positive environmental impacts, is considerate of potentially negative environmental and social impacts, and is in alignment with the Green Loan Principles.