(Sydney, NSW) EG is seeking to raise an additional $150 million in equity for its High Income Sustainable Office Trust (HISOT) fund that focuses upon improving the sustainability of existing properties.
Cornerstone investor, Clean Energy Finance Corporation understands the value in improving current buildings instead of building more.
“Through HISOT, underperforming buildings are revitalised into desirable offices that need less energy to operate and produce fewer carbon emissions,” said CEFC Investment Funds Lead, Rory Lonergan. “They become more attractive to tenants, command higher rentals, have lower vacancy rates and provide attractive returns for investors.”
At the helm of the trusts’ operation is executive director, Roger Parker and associate director Michael Noblet.
“HISOT is an impact investing fund, reducing energy costs to achieve a minimum of 4.5 stars NABERS, changing non-core assets into core offerings, resulting in improved tenant covenants and retention and energy savings,” Mr Parker said.
The key to ensuring a return on capital spent improving energy efficiency, Mr Parker reveals, is good asset management. “Good asset management includes putting systems in place which reduce costs and emissions. Such things include management and improvement in building control systems and software.”
The HISOT fund and assets acquired to date are a prime example of balancing sustainable buildings and strong investor returns Now, EG is looking expand the fund to an asset base of $400 million with a portfolio of 7 to 10 assets.
Most recently, EG bought and upgraded a property in Burwood, Sydney fully leasing the 4.5 NABERS rated building to a government tenant and ultimately realising a 25 per cent internal rate of return on sale.
EG believes doing well does not come at the expense of doing good in the community or for our environment. The HISOT fund and assets acquired to date are prime examples of this.