GERMANY - HypoVereinsbank subsidiary III-Investments has launched the first real estate spezialfond to invest exclusively in ‘green' real estate assets.
The Green Building Fund aims to invest €400m over the next two to three years in sustainable and energy-efficient real estate developments, as well as real estate properties.
The fund will follow a core/core-plus strategy and will focus on office buildings in "interesting" economic European locations (excluding central and eastern markets).
The real estate properties will need to be certified sustainable according to either nationally or internationally-accepted standards (BREEAM, LEED, HQE, DGNB).
The company cited a recent survey which showed two-thirds of institutional investors plan to invest more in sustainable real estate in the future.
Reinhard Mattern, managing director at III-Investments, said investors were becoming increasingly interested in the potential economic benefits of investing in sustainable buildings.
Low energy costs in the long-term also mean that green buildings are preferred by tenants and achieve above-average rental rates, he added.