Climate Change Capital, an investment bank focussed on clean energy and a low carbon economy, has held a first close on a green property fund.
The company has raised £50 million (€63 million;$80 million) for the commerical real estate vehicle. Investors include Dundee-based Alliance Trust, Dutch banking group SNS Reaal, Australian investor IAG, and Stanhope, the UK property company.
London-based fund managers, Tim Mockett and Esme Lowe, expect to see up to half of the investment from the fund to go into the south east of England with the emphasis on 'retro-fitting' existing buildings. The fund managers predict that a two-tier market will emerge with future-proofed energy efficient buildings likely to outperform obsolete buildings that run the risk of being downgraded in value.
Lowe joined Climate Change Capital earlier this year from Capital Trust, a property investment management firm. Mockett joined from Stow Securities.