CIB to Provide $70M Financing to CAPREIT to Retrofit 60 Multi-Residential Buildings
May 2, 2024
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.
