Puma Property Finance has added BREEAM as a certification pathway to its Impact Lending Framework (ILF) for the first time, with exit fee discounts on its development finance for schemes that meet sustainability criteria.
Puma says it is the first UK development lender to partner with BREEAM. The updated framework lists BREEAM as a new independently verified certification route, with Sintali and the NextGeneration Project also named as partners.
Developed by the Building Research Establishment, BREEAM has assessed planning projects, infrastructure and buildings for more than 30 years, and more than 3 million buildings across 108 countries are registered with it. The method assesses whole-life performance across new build, refurbishment, fit-out and in-use assets.
Launched in 2024, the ILF rewards developers that deliver measurable environmental and social outcomes with lower exit fees on their development finance. More than 30 developments across a range of asset classes have used it since.
The update raises the minimum standards. To qualify for a discount on development finance exit fees, every development must first meet two requirements: EPC A on completion and fossil fuel-free operation. Beyond those, qualifying developments can receive an exit fee reduction of 0.5% or 1.0%, applied at repayment once independent verification confirms performance.
Projects targeting BREEAM Excellent can qualify for the 0.5% Impact tier, while BREEAM Outstanding projects can qualify for the 1.0% Impact+ tier. The framework still recognises EDGE and the NextGeneration Project, and EDGE Advanced and NextGeneration Gold can reach Impact+ when paired with an additional environmental or social criterion.
That additional criteria menu covers developments in areas of social deprivation, Real Living Wage employer commitments, Certified B Corp status, affordable housing above 25% and Biodiversity Net Gain above 20%. Each criterion must remain independently measurable.
“The ILF was launched to make it financially compelling for developers to deliver stronger sustainability and social outcomes,” said Dee Korab, head of impact at Puma Property Finance (pictured). “The response from the market has been hugely encouraging, with strong uptake across different sectors and geographies.
“We have also seen significant progress across the development market. Developers, investors and occupiers are becoming more sophisticated in how they assess sustainability, resilience and long-term value. As the market evolves, we want our framework to continue supporting and incentivising ambitious and stretching sustainability and social impact outcomes.
“By introducing BREEAM as a certification pathway, while continuing to work with important partners including Sintali on EDGE Certification, we are giving developers greater choice while also raising the bar. The strengthened framework is more stretching, but that is intentional. We want to support developers who are going beyond minimum requirements and creating buildings that are more sustainable, commercially resilient and socially valuable.
She added, “Buildings with stronger sustainability credentials attract stronger tenants, support institutional demand and help protect long-term asset value. As a development lender, we are present at the point when those decisions are still being made, and our role is to encourage and support the delivery of better developments.”
“BREEAM accreditation is a key mechanism for validating asset value, and Puma Property Finance are pioneers in setting clear incentives to target high asset performance,” added Tom Wilson, director of BREEAM.
“Finance has an important role to play in accelerating better outcomes across the built environment, and when lenders recognise and reward higher levels of sustainability performance, it strengthens the commercial case for developers to go further than minimum requirements.
“The changing climate has made sustainability and resilience core considerations for investment decisions, and BREEAM provides an independent, robust and transparent framework to prove performance across the whole lifecycle of buildings.”
