Kenmore and DTZ have joined forces to launch a €750m (£521m) green fund targeting office investments across Europe.
Sustento will aim to exploit the increasing environmental demands on the sector, in particular the introduction of energy performance certificates.
These will be required from April 2008 for sales and lettings of UK buildings of more than 5,500 sq ft.
The fund will focus on European office investments, primarily in city-centre locations, mixing new-build property with refurbished buildings and existing assets that meet the fund’s criteria.
These criteria have been drawn up by: Cyril Sweett, which is advising on building design and standards Herbert Smith, which is advising on leases that set sustainable targets for tenants and sustainable development charity Forum for the Future.
Kenmore will co-invest in Sustento and act as asset/development manager. It may also part-seed the fund with existing developments. DTZ will act as the investment and property manager and raise capital.
Rob Brook, managing director for Kenmore, said: “The creation of Sustento marks a significant point in the evolution of the commercial property market.”
Sustento’s launch is Edinburgh-based Kenmore’s first announcement since Australian trust Mirvac pulled out of talks last week to buy the company, blaming unrest in the credit markets. Kenmore has £1.7bn of assets under management across Europe.
The fund is to be unveiled by Jonathan Porritt, founder of Forum for the Future, at the London Stock Exchange on Wednesday (10 October).
? This week, Australian developer Lend Lease said it wanted to “bare its soul” about how it will tackle the issue of sustainability, as it launched its first sustainability report focusing on its rapidly expanding UK retail and communities business.
The fund will target green office developments, like the Gherkin in London
