While investors have yield and return on investment as a central priority, commercially successful investment standard buildings need sustainability accreditation, which has become an integral part of the leasing process and asset management. .

In addition, investors should consider a longer-term increase in the value of an asset and the prospect of new national and international sustainability regulations. ESG strategies in all investment areas are now seen as necessary to tackle climate change and pandemic issues. There is also a growing recognition by investors of social inequality.

Earlier this year, the commercial component of Horizon Development’s LEED “Platinum” certified upscale mixed-use Szervita Square building was purchased by Union Investment for one of its institutional real estate funds.

“The successful sale of Szervita Square Building to a German lead investor with extremely high quality and sustainability standards proves our competence in international development and that base pricing for excellent assets is possible in the European markets. Central and Eastern Europe,” said Virág Bihari, partner and majority shareholder of Horizon Development. and responsible for overseeing the process of disposing of the agreement. “The Szervita Square Building was conceptualized and realized in accordance with the principles of ESG and inclusion,” he adds.

Value-added acquisition

ESG criteria are also at the heart of investment strategies in the value segment of the office market. In a recent deal, UK-based investor Europa Capital said it was aiming for a full ESG repositioning for its latest value-added acquisition in Budapest, Akadémia Business Center.

“The aim is not only to create a building suitable for modern occupants, but also to transform the asset into a Net Zero pathway, removing reliance on greenhouse gases. The building will also aim for BREEAM certification, Wiredscore and WELL,” said Europa Capital. It plans to upgrade ownership and undertake asset management in partnership with ConvergenCE.

“In investment markets, only ESG-compliant buildings will be on the shortlist, as investors and banks will only lend money for investments in sustainable and green buildings,” says Hubert Abt , CEO of the main provider of serviced office space in the CEE, New Work. .

“As a result, investors and operators must adjust to the standards of impact investments which are defined as investments made with the intention of generating a measurable positive social and environmental impact alongside a financial return,” he said. he adds.

Matolcsy applauds Carney’s call for sustainability

The Governor of the National Bank of Hungary (MNB), György Matolcsy, reiterated his call for central banks to play an active role in the fight against climate change in an article published on the central bank’s website. Matolcsy addressed an opinion piece by Mark Carney, former Governor of the Bank of England and UN Special Envoy for Climate Action and Finance, published earlier in the Financial Times. In the op-ed, Carney argued that $100 trillion represents the “minimum amount of external finance needed to promote sustainable energy over the next three decades if it is to be effective.”

Atenor begins a collaboration with CO2logic

Atenor has started collaborating with CO2logic to calculate its emissions at corporate level in all the countries where it operates. CO2logic offers CO2-Neutral certification to organizations that calculate, reduce and compensate for their climate impact. To achieve this, all areas in which the company has an effect are scrutinized, including but not limited to the climate impact of energy consumption, company cars, commuting, commuting professionals and purchases such as paper and computer items. Atenor says it is now taking the next step by using this input to put in place a streamlined climate reduction plan and strategy through 2030.

CPI launches green bond issue

CPI Property Group has launched a sustainability bond issue. The sustainability bonds were issued for a value of 700 million euros. “CPI PG is proud of its leadership in sustainable finance. The group was the first borrower in our region to issue benchmark green bonds in 2019 and has further strengthened our program and capital structure with this innovative transaction,” said CEO David Greenbaum.

CTP returns to the green bond market

Leading Central and Eastern European logistics park developer and provider CTP has returned to the bond market with what it describes as strong demand from ESG investors for a further €700m tranche. “CTP has decided to return to the markets in early 2022 to secure competitive pricing for our rapidly expanding development pipeline of sustainable industrial and logistics assets and secure our funding for the remainder of the year,” comments the Chief Financial Officer. Richard Wilkinson. “We have seen greater demand than before, with around 90% of investors focusing on green investments. This application shows the attractiveness of CTP’s green certification as the only European issuer of industrial and logistics real estate with a portfolio that is 100% BREEAM certified for sustainability.

116 electric charging stations will be installed at points of sale in Hungary

The Stop Shop retail network operated by Immofinanz will be expanded with 116 high-performance electric charging stations operating at 14 Hungarian locations. The company has emphasized its commitment to environmentally responsible operations throughout the region. “It is this competitive advantage that Immofinanz has decided to develop further, as well as to extend its existing services with electric charging stations. Customers will not only be able to do their shopping easily, but they will also effectively use the time spent at the Stop Shop to charge their electric car. The cooperation between Immofinanz and the e-station aims to expand electromobility in regions and district towns,” said Viktor Nagy, Country Operations Manager of Immofinanz for Hungary.

This article first appeared in the print issue of the Budapest Business Journal on January 28, 2022.