Nuveen’s US green capital division has secured $785m (€687.2m) in new institutional capital commitment for its commercial property assessed clean energy (C-PACE) lending strategy.
Nuveen Green Capital’s (NGC) C-PACE lending strategy provides eligible insurance investors with access to investment-grade impact assets, offering the potential for long-dated, steady returns while supporting much-needed capital expenditures on commercial properties.
Joseph Pursley, Nuveen head of insurance, Americas, said: “While sustainability and impact remain key considerations for insurers and their investments, we also continue to see life insurers prioritising longer duration, investment grade asset-backed securities with attractive risk-adjusted returns.
“NGC’s C-PACE strategies meet both of these considerations, which provide a solution that drives greater climate resiliency while being capital efficient, meets risk requirements and offers scale that insurers are looking for in their investment portfolios.”
Alexandra Cooley, CIO and co-founder of Nuveen Green Capital, said: “NGC’s vertically integrated platform brings investors scaled and proprietary flow of C-PACE assets with established sponsors with both compelling economics and positive social impact.
“For property owners, this strategy enhances NGC’s balance sheet lending capabilities and our readiness to provide attractive financing that improves buildings’ bottom lines.”
In October last year, La Caisse and NGC set up a $600m commercial real estate financing venture which combines C-PACE financing and senior bridge and construction financing.
At the time, the firms said the financing programme will provide a “substantial source of flexible, committed, and discretionary capital for new large-scale construction and bridge financings across key asset classes and markets”.
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