Patrizia is raising up to £75m to deliver ESG improvements across its Hanover fund.
Established in 1967, Hanover is one of the UK’s oldest open-ended property funds, with more than £500m of assets under management.
The capital will finance a capex programme delivering ESG-related improvements across the portfolio, supporting its strategic aim of being the most sustainable fund within its UK peer group. Hanover has achieved net-zero carbon (scope 1 and 2) and was last year awarded the AREF Investors’ Award for outstanding achievement for its approach to achieving net-zero carbon.
But there is still room to improve, Patrizia said. Mischa Davis, Hanover’s fund director, commented: “This fund raise will enable us to undertake a comprehensive asset management programme as we aim to unlock significant upside potential, create maximum value for our investors and, importantly, ensure that our assets are future-proofed for the coming years.
“In line with Hanover’s ESG ambitions, the majority of these measures will improve the sustainability performance of our assets, to maintain the fund’s net zero position and ensure Hanover is among the most sustainable funds in its peer group. This ongoing strategy is designed to further enhance an already high-quality, diversified portfolio that continues to consistently outperform the market and delivers robust returns to investors over the long term.”
The capital raised from investors will be allocated to major projects at some of the fund’s flagship assets.
Patrizia plans to transform Westcott Venture Park, the largest business park in Buckinghamshire, into a carbon-negative industrial park through the delivery of another tranche of its on-site solar farm. Once completed, the solar farm will span 35 acres, with phase three alone providing an additional 7.65 megawatts of capacity. Hanover recently invested £ 3.7m to expand the park with the construction of a 27,000 sq ft high-tech building, which will be home to a new in-orbit space manufacturing facility and a healthy living laboratory.
At Mole Business Park in Leatherhead, Surrey, Patrizia is undertaking a back-to-frame refurbishment and extension of 55,000 sq ft of office space, as part of a new 20-year lease agreement with the existing tenant, Surrey and Borders Partnership NHS Foundation Trust.
The focus will be on decarbonising the asset by using more sustainable materials and improving its energy efficiency, while creating a best-in-class office space.
At Thorp Arch in Yorkshire, Patrizia will fund the development of a new garden centre and high ropes adventure park at the 2m sq ft Thorp Arch Estate. The site will also include 70 electric vehicle charging points and a BREEAM Excellent tenant fit-out, and the repositioning will be delivered through net-zero construction methods.
Patrizia also plans to develop nine new BREEAM Excellent industrial and logistics units at Thorp Arch to meet local demand, totalling 95,000 sq ft.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
