NEPI Rockcastle is increasing the sustainability targets for the following decade and aims to become carbon neutral by 2030. The Group’s initiative meets the EU’s efforts to combat climate change through carbon neutrality. BuildGreen, advisor in the field of sustainable development in Central and Eastern Europe, will provide NEPI Rockcastle carbon-neutral audit and sustainability strategy, to meet the Group’s target and support the line created within the realms of the Paris Agreement.

BNP Paribas Real Estate Investment Management (BNP Paribas REIM) has successfully launched the first property fund that sets out to be compliant with the 2015 Paris Agreement, a landmark agreement that brought nations together to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low carbon future. 

Warburg-HIH Invest Real Estate GmbH has kicked off the process of converting its European real estate portfolio to green energy. The Hamburg-based investment manager successfully implemented the new energy supply for the LEED Platinum-certified White House office building in the Hungarian capital of Budapest in partnership with operating costs expert Westbridge International AG. The move will cut the building’s carbon emissions by just under 2,700 tonnes within the next three years. The fully let building is part of an open-ended special alternative investment fund (AIF) managed by Warburg-HIH Invest.

The latest Property Talks event, organised virtually by RICS Hungary, focused on renewable and alternative energy sources and their role in the built environment. Eight real estate experts shared their insight on this topic in the form of six presentations and one panel discussion.

Impact Developer & Contractor has started the construction works of the fourth phase of the Greenfield Băneasa residential compound. This will include Impact's first commercial project, Greenfield Plaza, with 7,258 sqm of space for trade and services and 1,184 sqm of office space. The entire project has a value of €12 million and it will be built with RCTI Company s.r.l. with which Impact signed a contract worth €7.5 million. At the same time, Impact is also investing €500,000 in the green areas of its Luxuria Residence compound located in Bucharest’s Expoziției area.

While in Poland over 20% of investors are favouring projects that have high ESG-related ratings (which is fourth highest figure globally), Hungary and the Czech Republic are the two countries with the highest share (over 40%) of respondents saying that ESG considerations play no role when they evaluate projects, according to the latest results of the RICS Global Commercial Property Monitor.

As part of a new climate strategy, one of the leading German asset managers is also targeting net-zero emission portfolio by 2050 – German investment manager KGAL has committed to becoming a climate-neutral company by the beginning of 2021 by offsetting all greenhouse gas emissions connected to its operations. Emissions calculated per employee will be reduced by 5% annually during the next 10 years. It has also pledged to have a net-zero emission investment portfolio by 2050. The targets are set out in the company’s newly announced climate strategy.

CA Immo successfully placed a €350 million fixed rate senior unsecured green bond with a 5-year maturity and an annual coupon of 1.0%. The issuance was oversubscribed more than 5.4 times at final terms with strong demand by more than 150 investors.

Even though logistics is the real estate sector least affected by the current economic downturn, tenants are still looking to cut costs and this is what landlords need to respond to. Ana Dumitrache, Country Head at CTP Romania, who will be a speaker at our upcoming SEE Property Forum 2020 in Bucharest, talked to us about how COVID-19 has impacted the company’s operations, what tenants are looking for and how an ambitious expansion strategy can be executed.

CTP successfully issued a debut green bond for €650 million on 1 October 2020. CTP’s inaugural green bonds became the largest debut issuance by a CEE real estate company.  The bonds received a strong reception from investors and were several times oversubscribed with a peak order book in excess of €2 billion.