Together with Adventum Penta, the European Bank for Reconstruction and Development (EBRD) is investing up to €50 million in the secondary market for green commercial real estate in Central and Eastern Europe (CEE).

Among the investments are making the Sky Tower mixed-use building in Poland greener and making Tesco-anchored retail parks in Hungary and the Czech Republic more sustainable. Potential follow-on investments will also focus on the CEE region.

The EBRD's investment prioritises sustainability, with acquired buildings needed to attain BREEAM certification with at least a "very good" rating, an equivalent rating from an internationally recognised green certification scheme, or at least a 30% energy savings. In addition, the buildings will implement a set of sustainability criteria, such as green leases and improved sustainability management procedures.

Vlaho Kojakovic, EBRD Director for Property and Tourism, said: “Building sustainable, highly energy- and water-efficient, and low-emission buildings, infrastructure, and industry is at the forefront of the climate investment debate. The EBRD is still very committed to greening both new and old buildings across all types of real estate and to expanding the range of financial tools that help greener buildings. We are, therefore, pleased to partner with Adventum, a growing regional player in CEE, and to join forces in enhancing the environmental, sustainability, and governance (ESG) credentials of a mixed-use real-estate portfolio.”

Kristóf Bárány, Founding Partner of Adventum Ltd., said: “The rigorous ESG requirements of the EBRD have been adopted by Adventum. The fund's ESG strategy now goes beyond the requirements of Sustainable Finance Disclosure Regulation Article 8 by focusing on the lifetime reduction of CO2 footprint achieved through energy savings, the use of recycled construction materials, and investment in sustainable infrastructure. The strategy is to focus on the refurbishment of existing buildings. Moreover, with diligent planning, the refurbishment works targeting emission reductions can be completed while the buildings are fully operational and generating income.”

Through its involvement in the real-estate sector across asset classes, the EBRD aims to redress the fundamental undersupply of modern, high-quality, energy-efficient commercial, logistics, and residential real estate in its regions. The Bank has invested over €4 billion in more than 210 projects in the property and tourism sectors.

Source: EBRD