Hannes Wimmer, Executive Director, Loan Syndication at Erste Group Bank AG talked to Property Forum about the segments driving the property investment market and the funding focus of banks on sustainable projects. He reveals that compared to Western Europe, the CEE region is lagging a bit when it comes to financing sustainable projects, but big changes can be expected during the next 6 to 12 months.

Since 2007, when the European Investment Bank (EIB) issued the world's first Climate Action Bond (CAB), green bonds have evolved from a marketing tool into one of the fastest-growing investment vehicles. This trend is also visible in the real estate market and is expected only to strengthen, according to Colliers.

In order to sustainably minimize the CO2 emissions and energy consumption of its international property portfolio, CA Immo relies, among other things, on centralized energy management and green building operation.

Over 300 buildings and real estate properties were certified as ‘green buildings’ between 2010-2020 in Romania, a period that marked the first decade of sustainable development. Romania ranks 3rd among CEE countries, after Poland (1232 certificates) and Czech Republic (422). The next positions are occupied by Hungary (232) and Slovakia (124). The accelerated growth is deemed to continue, as green buildings become a strategic tool in reaching EU Green Deal targets, according to the BuildGreen 2020-2020 Sustainable Development Report.

Panellists at our virtual European ESG Forum have pointed out that environmental, social and governance criteria are gaining prominence in property investment. Going forward, as ESG certifications become mainstream, securing funding for green buildings will be streamlined, according to the panellists.

CTP has completed its largest green bond issuance to date, following the company’s March IPO and recent inclusion in the Euronext AScX index. Structured as a dual-tranche, CTP raised a total of €1 billion under its €4 billion EMTN programme. The issue included a €500 million four-year tranche and a €500 million eight-year tranche. Total demand for the issue reached nearly €4 billion, evidencing the solid standing that CTP holds on the international bond markets.

Property Forum’s next free-to-attend virtual event will focus on sustainability in real estate. Environmental, social and governance factors, alongside financial factors, are playing an increasingly important role in the investment decision-making process for many companies. Leading international experts will come together at our European ESG Forum to discuss sustainable real estate strategies for the future and to provide a deeper insight by going beyond the buzzwords.

Globe Trade Center has presented its first-ever ESG report, summarizing the group’s achievements during 25 years across its six markets. The 2020 report presents data on GTC’s engagement in sustainable development, responsible construction and asset management, collaboration with local communities and responding to stakeholders’ expectations. GTC is the first among commercial developers to present an ESG report on the CEE market.

CTP announced that in its first-ever ESG Risk rating, carried out by Sustainalytics Inc., the company achieved a low-risk score of 11.0. The ESG Risk score measures the degree to which the enterprise value of a company is exposed to material financial impacts from ESG (environmental, social and governance) factors. A score of 11.0 places CTP in the lower end of the “low-risk” category, which on the Sustainalytics scale ranges from 10–20.

Cushman & Wakefield has appointed James Woodhead to head its EMEA wide Asset Services sustainability and environmental, social & governance (ESG) consultancy.