The Threadneedle Low-Carbon Workplace Trust has secured a cash commitment from The Townsend Group, taking its total equity to £100m.
The Ohio-based Townsend Group, which manages and advises on more than $100bn of investments, is reported to have committed around £35m to the fund.
In October, the US firm was revealed as the cornerstone investor in AEW UK’s first vehicle, the Core Property Fund.
LCW is a partnership set up in 2010 between fund manager Threadneedle Investments, developer Stanhope and the Carbon Trust, a not-for-profit company with the mission to accelerate the move to a low carbon economy.
LCW looks to refurbish properties to best practice low carbon standards, and offers occupiers advice and support to ensure a building’s energy efficiency specification is achieved.
LCW, which has a portfolio of four projects, said it is in “advance stages” of securing two more.
Its portfolio includes: Premier House, Twickenham, TW2; Grove House, Hammersmith, W6; Mansel Court, Wimbledon, SW19, and The Billings, Guildford (pictured), which will be officially launched in February, and is already occupied in part by Investec Wealth and Investment.
The forecasted return on equity across the four projects is well in excess of 20% against a fund target of 15%.
The Townsend Group principal, Damien Smith, said: “This strategy is extremely relevant in promoting both responsible investment, which we are committed to under the United Nations Principles for Responsible Investment, and importantly, providing occupiers with efficient modern workspace and lower occupancy costs.
“This investment is consistent with our objective of working with and investing alongside management teams who focus on active property management and have track records which provide investors with excess returns above market.”
Threadneedle managing director, Don Jordison, said: “We have reached critical mass with LCW. Since its launch 18 months ago, LCW has rapidly completed the acquisition and refitting of four buildings and secured high-quality tenants. Townsend’s investment further validates the strength of the investment case for this fund.”
bridget.oconnell@estatesgazette.com
