CEFC invests 125m in sustainable property trust

CEFC invests $125m in sustainable property trustThe Clean Energy Finance Corporation (CEFC) is committing up to $125 million in a $400 million trust which will invest in energy upgrades of ageing office stock.The $400 million unlisted trust, managed by EG Group, will buy, own and retrofit up to a dozen commercial office properties.The properties will be upgraded to meet the equivalent of at least 4.5 stars under the National Australian Built Environment Rating System (NABERS).The CEFC has committed more than $1 billion in finance to investments in clean energy projects valued upwards of $3 billion. This is the first time the CEFC has made an equity investment in the Australian real estate sector.”Our investment in the fund marks a change in the CEFC’s property program. We are focused on achieving better buildings by accelerating investment in greener buildings to deliver increased performance and lower carbon emissions,” says CEFC’s chief executive officer Oliver Yates.”Office buildings with a high NABERS rating have been found to have higher rents, higher net operating income and lower capital expenditure. They also have lower vacancy rates and longer Weighted Average Lease Expiry (WALE) when compared with buildings with low NABERS ratings,” Yates adds.EG has more than $1.5 billion in assets under management. Its current portfolio spans the retail, commercial and industrial sectors, with a pipeline value of more than $2 billion.Chief executive officer of EG, Adam Geha, says the trust will help to meet the demonstrated demand for higher performing commercial space in metropolitan areas outside central business districts. “Our focus is toward taking buildings reaching the end of their economic lifecycle, making the right choices and installing the right equipment to reposition them to meet modern standards and become attractive to high quality tenants,” Geha says.