Hines Poland Sustainable Income Fund

Location:

Poland

Project number:

45893

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

FI

Target board date:

12 Mar 2014

Status:

Signed

PSD disclosed:

17 Mar 2016

Translated version of this PSD: Polish

Project Description

The EBRD has committed EUR 50 million equity to Hines Poland Sustainable Income Fund (the "Fund"), a closed-end investment fund established as a Luxembourg fonds commun de placement.

Project Objectives

The Fund's objective is to seek long-term capital appreciation through investments in institutional quality sustainable income producing real estate assets in Poland, with a focus on office and warehouse segments. This is the first green property fund in Poland and Central and Eastern European ("CEE") with a formalized mandate to implement sustainability improvements across its real estate portfolio and it was awarded by the EBRD the 2015 Environmental and Social Innovation Award.

Transition Impact

The transition impact of the proposed project will come in particular from the following areas:

Demonstration effect: The Fund is committed to sustainability and is the first green property fund in Poland and the entire CEE region that will systematically integrate sustainability measures to improve the sustainability performance of acquired assets. Furthermore, the Fund will introduce professional resource efficiency facility management and ensure interaction with tenants and building occupants, e.g. through introduction of green leases in cooperation with its tenants. The concept is expected to be replicated in the wider CEE region.

Setting standards:The Fund is expected to set standards of business conduct through sustainability improvements in the acquired real estate assets and obtaining green certifications (BREEAM or  EED). Sustainability related achievements will be broadly published by means of Fund press releases, thus increasing awareness among all stakeholders.

Market Expansion: With this investment the Bank aims to facilitate strengthening the Polish private industry and develop further the pool of institutional capital available for investment in Poland. An investor in the Fund is a foreign institutional pension fund which demonstrates to Polish authorities and institutional investors the suitability of private equity in a diversified long term institutional investment portfolio.

Client Information

HINES PROPERTY FUND

The Fund is managed by Hines Poland Management Company S.à r. l., a limited liability company organised under the laws of Luxembourg.

Hines is a reputable international real estate firm established in 1957. The firm has presence in 199 cities around the globe and has USD 87 billion assets under management, with a portfolio of 531 properties with over 186 million square feet (17 million square meters).

EBRD Finance Summary

EUR 50 million, matching the largest investor.

Total Project Cost

The Fund had its final closing in June 2015, raising total capital commitments of EUR 155 million.

Environmental and Social Summary

Categorised "Financial Intermediary (FI)". Hines Poland Sustainable Income Fund will be required to comply with the EBRD Performance Requirements 2 and 9 and to provide annual environmental and social reports to the Bank. Hines was able to demonstrate that it has robust procedures for environmental and social due diligence and management of the assets it acquires. In addition, its property management / refurbishment practices are geared towards achieving high environmental and social performance.

The Fund is assessed to deliver significant energy and carbon reduction through implementation of sustainability activities. Annual energy savings starting from the time when the Fund equity is fully deployed will reach an estimated level of 4,420 MWh per year of final energy or the equivalent of 365 tons of oil equivalent of primary energy. Carbon reductions are estimated at 1,530 tons of CO2 per year.

Technical Cooperation

The Bank provided Technical Cooperation funds (TC) in order to support Hines in setting-up green lease policies for the Fund and identifying cost-effective sustainability measures within the Sustainability Management Plan for selected assets. The technical cooperation funding was provided by the Government of Spain.

Company Contact Information

Mieczyslaw Godzisz, Senior Managing Director, Hines Poland
mietek.godzisz@hines.com
+ 48 22 351 24 00
+48 22 351 24 01
www.hines.com
ul. Bonifraterska 17 00-203 Warsaw, Poland

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