CBRE Investment Management and Dutch financial services group NN Group have committed initial equity of €500 mln to a new “Positive Impact Programmatic” venture (PIPV) investing in Dutch sustainable and affordable residential real estate.
PIPV will aim to improve energy efficiency and reduce carbon emissions through its investment, contributing to NN Group’s target to increase investments in climate solutions by at least €6 bn by 2030.
The programme aims to make an impact on a broad range of Environmental, Social and Governmental (ESG) themes. The ambition is to achieve alignment with the environmental objectives of the EU Taxonomy for all investment properties, while also focusing on providing mid-priced rental for households who do not qualify for social housing.
PIPV targets a reduction of 80% of landlord-controlled greenhouse gas emissions, procuring 100% renewable electricity by 2030 and net-zero operational emissions by 2035. Assets must achieve a high standard of energy performance, being at least 10% more efficient than the Nearly Zero Energy Buildings requirements as defined by the Dutch ‘Bijna Energieneutrale Gebouwen’ (BENG).
Jelle van der Giessen, Chief Investment Officer of NN Group commented: ‘Contributing to the well being of people and planet is a key element of our strategy. NN has set clear targets towards net-zero emissions, and we have pledged to more than double our investments in renewable infrastructure investments, green bonds and energy efficient real estate in the coming years. The PIPV project is clearly contributing to that target.’
Bas Tiemstra, head of Separate Accounts CE, who jointly oversees the NN Group real estate portfolio with Sander van Riel, head of CE Investments, Indirect Real Estate Strategies, CBRE Investment Management, added: ‘Our work with NN through the PIPV will focus on assets that qualify as being highly energy efficient but also have rent affordability, tenant inclusion and wellbeing considerations at their heart. The programme has made its first acquisition with the forward funding agreement to acquire a residential asset located in a popular location in Eindhoven, the Netherlands. It is a solid first acquisition for the PIPV in delivering for investors and demonstrating this agenda.’
Promotion of circularity, water conservation, biodiversity protection and pollution prevention will all be non-negotiable elements incorporated in the asset selection and construction design of the targeted PIPV properties.
Going forward, the programme aims to include life cycle assessment of materials employed in the construction phase as part of the development design with the ambition to move toward innovative and traditional biomaterials for limiting embodied carbon and further reduce waste and pollution. Simultaneously, the programme plans to add to the supply of affordable rental homes in high demand areas.
