Wells Fargo Corporate & Investment Banking’s Post

As sustainable building performance standards proliferate, property owners and lenders must swiftly assess their exposure and chart a clear path forward. Understanding and adapting to these standards is crucial for mitigating risks and ensuring sustainable growth. Thought provoking perspective brought to you by the SFA team.

Just to show, that tenant pressure is making asset owners act, the alternative is tenants voting with their feet, and asset owners ending up with stranded assets. We have solutions to make this happen in an IFRS 16 complaint way at no cash out for the asset owners.

We're seeing increased appetite from lenders to finance refurbishment projects, driven by the dual benefits of value protection and environmental impact. This enthusiasm is rooted in: 1.    Enhanced Income: Improvements in properties drives income growth, ensuring debt coverage is maintained. 2.    Value Protection: Refurbished properties will lead to enhanced value, meaning that refinancing risk at maturity is minimised. 3.    Environmental Commitment: Supporting decarbonisation reflects lenders' dedication to sustainability. The competitive pricing landscape in lending is getting a boost from the UK’s new Sustainability Disclosure Requirements, especially with the introduction of ‘Sustainability Improvers’ labels. The growth in the debt market, bolstered by non-bank lenders, supports robust interest in deploying capital towards sustainable improvements. This is a golden time for investments that prioritise both financial returns and positive environmental impacts. Read more in our latest report: https://lnkd.in/erwfgzCy? and check out my market view on page 7.            @FloraHarley @TimRobinson @JessQureshi #Retrofit #KFCA #KnightFrank #PropertyFinance

Boosting Green Goals: Charter Hall Adds $1 Billion to Sustainable Loan Portfolio🌍💰 Charter Hall Group, a leading Australian property firm with over 32 years of experience, manages a diverse $60 billion portfolio that includes office, industrial, retail, and social infrastructure assets. Committed to sustainability, Charter Hall has recently expanded its sustainability-linked loans by securing an additional $1 billion, bringing their total sustainable finance portfolio to $2.4 billion. Sustainability-linked loans are financial instruments designed to incentivize companies to meet specific ESG performance goals. Interest rates on these loans are tied to the achievement of targets such as reducing carbon emissions and enhancing energy efficiency. This structure encourages companies like Charter Hall to integrate sustainability more deeply into their business models, reflecting a growing trend among large corporations to leverage sustainable finance for driving ESG initiatives. To learn more about this initiative, connect with me! 📈🔗 #charterhall #greengoals #sustainability #ESG #sustainable #finance #news

Despite challenges, there is optimism in the real estate industry, with many organizations anticipating growth and recovery, according to our survey of 350 industry executives https://lnkd.in/ejAhhjDC #PropertyInvestors #RiskManagement #AssetManagers #WTWPerspective

If you are considering buying or selling a UK based real estate asset which has; or will potentially have a Minimum Energy Efficiency Standard (MEES) #Exemption in place, the exemption does NOT transfer to the new owner in a sale. An exemption is attached to the owner, not the asset. In the event of a sale/acquisition, it becomes the responsibility of the new owner to reapply for the Exemption; which is no guarantee of approval. Although #MEES Exemptions help mitigate the risk of changing legislation for appropriate buildings (heritage listed etc.), they are not a bullet proof solution for all. If you own a building or are considering investing in a building, the MEES Exemption application process must not be considered as a 'given', and should be treated as a material financial risk to the performance of your building over time, as the ongoing approval decision(s) you need are out of your direct control. If your application was ever refused, this would severely limit the performance, desirability and value of your asset. To mitigate your risks, you need strategic, long-term planning to identify your investment objective, hold period, potential exit partner requirements, to understand how best to approach your investment strategy on an asset-by-asset basis. If you need support navigating the rapidly evolving space of ESG in real estate, this is one of the many things we do. #lifeproven #sustainability #esg #epc #assetmanagement #property #realestate

If you want to know more about the rise in importance of sustainability in business strategy and treasury practices, this footage from Lloyds Banking Group is worth a watch. It also includes commentary from Bekir Andrews, Environmental Sustainability Director at Wates Group who explains how the construction giant uses the Social Value TOM System™ to measure and report on its Social Value. As Bekir also points out, the TOM System™ enables an organisation to identify how they can stretch their measures to deliver more value in communities as part of business operations. Watch here: https://hubs.li/Q02gs40y0 #Construction #SocialValueinConstruction #BankingandFinance

Focusing on the long-term goals of your #investment can help #property investors decide what to prioritise, and energy efficiency is now high on the agenda. https://lnkd.in/eZ7aeHxN #propertyinvestment #energyefficiency #epc #newbuild #ukhousing

Did you know #sustainability and #CommProp valuation are intrinsically linked? Banks, developers and investors recently gathered to hear from the CBRE NI team and CBRE UK Head of Sustainability Sam Carson on the subject. #ESG #RealEstate #SustainableFutures

Commercial real estate professionals, a recent article highlights the rising demand for efficient and sustainable financing options in the commercial property sector. With ESG considerations now an integral part of investment decisions, lenders are stepping up their game to deliver green financing products tailored to cater to environmentally-conscious developers and investors. Key takeaways: - The market is witnessing a surge in green loans and sustainability-linked loans for commercial real estate projects. - An increase in government regulations supporting environmentally-friendly alternatives has fueled this trend. - Borrowers stand to benefit from potential cost savings by adhering to specific ESG criteria, translating into long-term value and competitive advantage. As our industry works towards a greener future, now is the time to explore innovative financing solutions that bolster sustainability and profitability for all stakeholders involved. Let's continue pushing the envelope in #commercialrealestate finance and embrace eco-friendly practices for a better tomorrow! 💼 🌱 #greenfinancing #ESG #commercialmortgagebroker