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Climate Change makes debut property purchase

Climate Change Capital, an investment bank focussed on clean energy and a low carbon economy, has acquired the first property for its €63m fund.

Climate Change Capital’s property fund has completed its first purchase since closing the fund to new investors in October last year.

The firm, which raised £50 million (€63 million; $80 million for its green property vehicle, said it has bought a prime office and retail building in Birmingham’s central business district. The six-storey property, comprising 67,000 square feet of offices and 13,000 square feet of retail, was acquired for an undisclosed sum. The property at 5 St Philip’s Place is let to the Department for Communities and Local Government while the retail occupiers include retailer Marks and Spencer, HSBC and HBOS.

Tim Mockett, joint managing director of the property team, said in a statement: “Our first investment combines good sustainability credentials with an excellent location and a long term lease to a government tenant.” He added the intention was to manage the building in a “sustainable way”. The fund will work with occupiers to improve the sustainability credentials of the property. “Retro fitting existing buildings is a vital part of creating a low carbon economy,” he added.

Esme Lowe, fellow joint managing director, said: “Deploying capital at this stage of the cycle underpins value with the opportunity to produce enhanced returns through proactively managing the risks associated with climate change.”

Climate Change Capital is an investment bank focused on clean energy and a low carbon economy. Investors in the property fund include Dundee-based Alliance Trust, Dutch banking group SNS Reaal, Australian investor IAG, and Stanhope, the UK property company.