(Sydney, Australia) – Leading real-estate fund manager, EG Funds Management, completed a first close on their debut sustainable trust, High Income Sustainable Office Trust (HISOT) with a new investor.

HISOT’s first close comprises two key investors, Clean Energy Finance Corporation (CEFC) with a cornerstone contribution of $125 million and Uniting Financial Services (UFS) at $25 million, with both eager for the fund to move into the investment stage. EG is targeting to build a portfolio of over $400 million in assets.

“We see a strong future for our partnership with CEFC and UFS,” says EG’s Executive Director Roger Parker. “Improvements in the NABERS rating are proven to have a positive impact in attracting blue-chip tenants to formerly underperforming office buildings.”

CEFC’s Corporate and Project Finance Director Rory Lonergan positions the fund as part of a broader strategy to drive Australia’s commercial property sector towards zero carbon buildings.

“For our cities to be competitive, we need dynamic business centres in the future and it is imperative that we act now to boost the energy performance of buildings so they are equipped to handle the demands of a clean energy economy.”

Similarly, UFS sees this fund as complementary to its ethical investment strategy. With robust activity in the sustainability sector, UFS is looking to benefit from the returns that EG has previously secured with their strong acquisitions and asset management.

The HISOT strategy targets office assets with a low National Australian Built Environment Rating System (NABERS) rating for active asset management and a repositioning strategy that will boost the rating above 4.5 stars. The fund was first announced in June 2015.