ARA Asset Management (Fortune) Limited, the manager of Fortune Real Estate Investment Trust (Fortune REIT), has entered into its first sustainability-linked interest rate swap with DBS Bank. This is Fortune REIT’s third green financing initiative, following its two sustainability-linked loans totalling HK$2.5 billion (US$320.42 million).

In addition to providing an interest rate hedge for Fortune REIT’s floating rate debt, the deal entitles the trust to a sponsorship from DBS upon the fulfillment of certain pre-determined targets on community engagement.

The opportunity gives rise to Farm@Fortune, in which Fortune REIT partnered with Rooftop Republic Urban Farming, a social enterprise supported by the DBS Foundation, to set up an urban farm at Fortune City One, its flagship mall in Shatin.

In Hong Kong, farmland resources are scarce, and hence most of its vegetable supply is imported. The associated packaging and transportation contribute to an increase in carbon footprint.

Farm@Fortune is an integrated green community project that promotes sustainable living practices in the community and circular economy through the recycling of surplus vegetables. Consuming locally produced crops can help minimize the need for transportation, thereby reducing carbon emissions.

The urban farm, located on the rooftop of Fortune City One, grows more than 15 types of organic seasonal crops year-long. To create an organic farming ecosystem within the community, surplus vegetables that are no longer suitable for consumption are collected from the Fortune City One market and converted into compost for the farm. Its first harvest earlier this month yielded a total of 32 kilogrammes of produce, all of which has been donated to the local charitable organization Food Angel.

In a concrete jungle like Hong Kong, urban farming utilizes underused urban areas and transforms them into green spaces to strengthen food resiliency and create oases of biodiversity. It also empowers communities to lead more sustainable lifestyles and rebuilds city dwellers’ relationships with food and nature.

Justina Chiu, chief executive officer of ARA Asset Management (Fortune), says: “We are excited to launch Fortune Malls’ first urban farm, providing a platform to promote the practice of organic farming and food waste reduction. Farm@Fortune, signifying our green partnership with DBS and Rooftop Republic, aligns with our motto “Our Care, Your Fortune”. The urban farm is part of our ongoing efforts in raising public’s awareness towards decarbonization and to generate long-term value for the community.”