Fund targets buildings for ‘green’ makeover
IMPAX Asset Management is to invest £50m in outdated buildings in Manchester that it plans to make more environmentally friendly.
The investment trust dedicated to alternative energy, water treatment and waste technology said new green laws mean 20% of offices will be “unlettable” from 2018.
It already owns 40 Spring Gardens where it says it has reduced carbon emissions by 25% over the past two years.
Tim Mockett co-manager of the Impax Climate Property Fund, said: “Under the Energy Act 2011, from 2018 landlords will not be able to let properties with an EPC rating of F or G to new tenants. This legislation will mean that almost 20% of office buildings will become effectively unlettable.
“We plan to identify further opportunities in Manchester where we can renovate to the highest environmental standards and optimise space for occupiers. Ultimately this regeneration of assets benefits occupiers, investors and the wider region. Our proven approach has boosted total returns, or green alpha, for investors by 10–15% above other commercial property assets in the region.”
Jamie Bottomley, a senior surveyor at CBRE and joint letting agent at 40 Spring Gardens, said: “The improved environmental performance of 40 Spring Gardens has been clearly quantified. With the constrained supply of top quality office space in Manchester, we expect environmental performance to play an increasing factor in occupiers’ decision making, particularly for large Grade A occupiers.”
