European asset manager Amundi has launched a real estate climate impact strategy, The Amundi Real Estate European Net Zero Ambition Strategy, that employs a multi-sector and multi country allocation, with a commitment to maintain the carbon footprint of the portfolio below a 1.5 C° trajectory model, in line with the Paris Agreement.
In terms of geography, the strategy will focus primarily on the deeper, more mature markets in Western Europe, while also investing in a selection of European peripheral markets.
It will predominantly target offices in prime locations benefiting from high demand and home office megatrends, as well as sectors such as logistics, residential, retail, and hotels.
The strategy aims to pay a regular coupon which will be accompanied by growth in net asset value over the long term in the belief that, in the future, decarbonised assets will be more attractive to tenants and investors.
According to the asset manager, this is an opportunity for the strategy to potentially benefit from an attractive acquisition value and rental indexation while preserving long term value thanks to the increasing energy performance of the buildings held in the portfolio.
The aim is to maintain the carbon footprint of the portfolio below the CRREM 1.5°C trajectory model at all times and to target a reduction of -40% GHC emissions by 2030.
The strategy is managed by Benjamin Launay, Conducting Officer – Real Estate.
Click here to receive CRE Herald’s weekly newsletter, news alerts and insights!
