Low carbon building fund closes with £70m

By Fiona Harvey
Published: February 7 2010 09:14
A property fund focusing on “greening” buildings has closed with nearly £70m (€80m, $110m) of equity.
Climate Change Capital, the low-carbon fund manager, aims to generate returns by refurbishing commercial buildings to save energy and other resources.
The fund’s managers work with the occupiers of the buildings to raise their environmental standards, for instance by installing better insulation, more energy efficient lighting and water-saving devices.
Improvements result in reduced operating costs, the benefits of which can be shared and increase the re-sale value of the buildings.
Climate Change Capital said the fund was 40 per cent invested, with two assets in Birmingham and Edinburgh, and said further investments were “under active consideration”.
Tim Mockett, managing director of the fund, said investors were looking for exposure to green property because they were “increasingly aware” that new and tightening regulations, on issues such as carbon dioxide and the energy efficiency of buildings, were making such properties more attractive.
“The trend to more energy efficient buildings driven by legislation, occupiers and investors, is irreversible,” Mr Mockett said.
Copyright The Financial Times Limited 2010.