Taurus Investment and Aegon Asset Management have entered into a $600m (€518.4m) partnership to buy value-add US multifamily assets with a plan to reduce the carbon emissions of the properties.
The companies have agreed the four-year ESG-centric decarbonisation venture to acquire assets and considerably reduce the energy consumption and carbon output of those assets.
As part of the venture, RENU Communities, a subsidiary of Taurus, will evaluate and apply its retrofit programme aiming to transition the assets to low-carbon, energy-efficient buildings.
The venture first investment is the recapitalisation of Canopy Villa Apartments, a 1981 vintage, 296-unit apartment complex located in Orlando, Florida.
Peter A Merrigan, CEO of Taurus Investment, said: “Taurus and Aegon AM have made a commitment to building a business that delivers returns to our investors, while also positively impacting both society and the environment, so it only makes sense to partner for this substantial decarbonization venture.”
Alexia Gottschalch, the global head of client strategy at Aegon’s real asset arm and US head of equity real assets, said: “The strong return potential and durable cash flows of the multifamily value-add strategy paired with this accretive, one-of-a-kind decarbonisation initiative aims to set the standard for a new way to approach these investments.”
Evercore Real Estate Capital Advisory acted as financial advisor to Taurus.
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