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EBRD invests in CEE green commercial real estate

By Olga Aristeidou

  • EBRD invests €50 million equity in green commercial real estate in central and eastern Europe
  • Co-investment with Adventum Penta Fund in Hungary, Poland and the Czech Republic
  • Acquired buildings to meet sustainability criteria and achieve green certification

The European Bank for Reconstruction and Development (EBRD) is supporting the development of the secondary market for green commercial real estate in central and Eastern Europe (CEE) with an equity investment of up to €50 million, in partnership with Adventum Penta.

The partnership will acquire commercial real-estate assets, which will then undergo upgrades to improve their resource efficiency.

Investments include the greening of the Sky Tower mixed-use building in Poland and the sustainability improvement of a portfolio of Tesco-anchored retail parks in Hungary and the Czech Republic. Potential follow-on investments will also focus on the CEE region.  

Sustainability sits at the heart of the EBRD’s investment, as the acquired buildings are required to achieve BREEAM certification with at least a “very good” rating, an equivalent rating from an internationally recognised green certification scheme, or at least a 30 per cent energy saving. The buildings will also implement a set of sustainability criteria, including green leases and enhanced sustainability management practices.

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 remains strongly committed to the greening of existing and new building stock across the spectrum of real estate and to increasing the range of financial instruments in support of 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 ESG strategy of the fund now goes beyond the requirements of Sustainable Finance Disclosure Regulation Article 8, while focusing on the lifetime reduction of the CO2 footprint achieved by energy savings, the utilisation of recycled construction materials, and investing 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. To date, the Bank has invested over €4 billion in more than 210 projects in the property and tourism sectors.

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