Germany listed Patrizia is asking existing and new investors to its UK open-ended fund, Hanover Property Trust, if they would like to invest in ESG-linked capex projects.
The firm is seeking £75mln (€90mln) which it believes will deliver ‘significant EGS-related improvements’ to assets in the fund.
Patrizia has laid out specific details for assets such as Westcott Venture Park, Aylesbury, Mole Business Park in Leatherhead, and Thorp Arch, Yorkshire.
Mischa Davis, fund director of Hanover at Patrizia said: ‘This fund raise will enable us to undertake a comprehensive asset management programme as we aim to unlock significant upside potential, create maximum value for our investors and, importantly, ensure that our assets are future-proofed for the coming years.’
‘In line with Hanover’s ESG ambitions, the majority of these measures will improve the sustainability performance of our assets, to maintain the fund’s Net Zero position and ensure.’
Davis claimed Hanover was already among the most sustainable funds in its peer group. The ongoing strategy is to further enhance what the owner describes as an ‘already high quality, diversified portfolio’ that continues to consistently outperform the market and delivers robust returns to investors over the long term.
The fund owns an array of assets such as a solar farm that provides up to 10 MW of energy.
Patrizia inherited Hanover via the takeover of Rockspring Property Investment Managers in 2017.
It is one of the oldest open-ended funds in the UK having been established in 1967 and owns £500mln of assets. According to the company, the fund has provided an average distribution yield of 5% for the past 10 years.
Proving a glimpse into its idea, Hanover is planning at Westcott Venture Park to transform the asset to a carbon negative industrial park through the delivery of phase three of the onsite solar farm. Once completed, the solar farm will span 35 acres, with phase three alone providing an additional 7.65 MWs of capacity. The energy generated will power the park’s 80-plus tenants, some of which are established companies within the space satellite technology and engineering sectors.
Hanover recently invested £3.7mln to expand the park with the construction of a 27,000 ft2 high tech building, which will be home to a new In-Orbit Space Manufacturing Facility and a Healthy Living Laboratory.
At Mole Business Park in Leatherhead, the focus is on decarbonising the asset by using more sustainable materials and improving its energy efficiency. Key investments will see the installation of rooftop photovoltaic panels; LED lighting and daylight controls; and high performance glazing, which is expected to reduce the building’s energy use intensity by around 60%, significantly below the levels set out in the London Energy Transformation Initiative (LETI).
