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					                              Property




Asset Management for a Sustainable Future
Property




5 St Philips Place, Birmingham, UK                           Internal view of 5 St Philips Place, Birmingham, UK




Sustainable Property as an Asset Class
The value of commercial property is increasingly influenced by factors related to
environmental and social sustainability and, most specifically, by the impact of climate
change. Political pressure and the convergence of environmental and climate change policy
and law are leading to regulatory and legislative change across the built environment.


Built Environment                                            of non-compliance as well as capturing the valuation
                                                             upside of a compliant low carbon portfolio.
There is now widespread awareness throughout
the property industry of the need to mitigate and            Of all the factors associated with the ‘sustainability’
adapt to the risks and drivers of climate change.            concept, climate change remains the most prominent in
This significant shift in sentiment has led to major         the minds of not only institutional property investors but
stakeholders in commercial property focusing on the          also of those occupying commercial property.
possible impacts of climate change, driven by matters        This is likely to mean that a new category of climate
such as corporate social responsibility, brand reputation,   change proofed buildings will constitute a new asset
the desire to reduce energy costs and the need to            class that will become a “must have” for a diversified
future-proof property investments.                           risk-adjusted portfolio.
At the same time, design and technological                   Organisations like the Carbon Disclosure Project have
improvements are leading towards the evolution of            made institutional investors increasingly aware of their
more sustainable buildings, which are increasingly           fiduciary responsibility to address climate change risk in
more desirable to occupiers and investors.                   the built environment. Our strategy offers investors an
Valuers estimate that there will be a potential value        opportunity to contribute in a positive manner.
differential in compliant buildings relative to non-
compliant buildings.
                                                             CCC’s Property Strategy
                                                             Climate Change Capital’s Property team manages in
Market Development                                           excess of £55m of equity for investment in commercial
By investing in climate change anticipating property,        property. The Fund Managers, Tim Mockett and Esme
investors will be protecting against the downside risk       Lowe, expect to be investing in major city centres



                                          ®
Creating Wealth Worth Having
3-5 Morrison Street, Edinburgh, UK                                View from Morrison Street Boardroom, Edinburgh, UK




                                                                  The Investment Team
across the UK with the emphasis on “retro-fitting”                The experienced investment team has over
existing buildings. The investment team works                     45 years in property fund management, investment
closely with CCC’s research and policy professionals              and development. The individuals comprising the
who, with other CCC investment professionals,                     investment team are respected industry figures in the
provide the Property team with advice spanning                    UK and European commercial property sector. They
the fund’s key sectors, helping them to understand                have complementary skills ranging across the spectrum
the complex interdependencies between market,                     of property fund management, development and
technology and policy trends.                                     asset management.




   5 St Philips Place – Birmingham
   In February 2009 Climate Change Capital’s Property Fund completed its first purchase – a prime office and
   retail property in an excellent location overlooking the cathedral in Birmingham’s central business district.

   This landmark six storey property, comprising 67,000 sq ft of offices and 13,000 sq ft of retail, was acquired
   off market for an undisclosed sum. 5 St Philips Place is let to the Department for Communities and Local
   Government while the retail occupiers include Marks and Spencer, HSBC and HBOS.




   3-5 Morrison Street – Edinburgh
   The team completed its second purchase on 15th July 2009, taking their investment in the UK market to around
   £55 million. The property was purchased from Hermes Property Unit Trust for £23.9m.

   The Edinburgh property comprises 57,000 sq ft of Grade A office space, let to Franklin Templeton Global Investors,
   5,000 sq ft of retail space, let to Sainsbury’s and a 14,500 sq ft cinema, let to Odeon. The net initial yield is 7.4%.




                                            Advisory | Carbon Finance | Private Equity | Property | Energy Infrastructure
CCC Head Office
Climate Change Capital
3 More London Riverside
London SE1 2AQ
United Kingdom
T: +44 (0) 20 7939 5000
F: +44 (0) 20 7939 5030




www.climatechangecapital.com




Disclaimer
The financial services outlined in this document constitute regulated activities as defined by the Financial Services and Markets
Act 2000 (Regulated Activities) Order 2001; as such these activities can only be undertaken by an authorised person. Climate
Change Capital Limited (“CCC”) is authorised and regulated by the Financial Services Authority. Some of the information,
and in particular the financial services described within this document, are intended exclusively for persons who qualify as a
professional client or eligible counterparty. Retail clients may not rely on the information herein.

				
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posted:3/7/2010
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