CBRE, the world’s largest commercial real estate services and investment firm, announces that its client, Impax Asset Management, is planning significant new investment in the North West of England in the New Year. The fund manager will target Brown to Green opportunities, looking to future-proof outdated buildings by ensuring they reach higher environmental standards and are made far more appealing to occupiers.
Tim Mockett co-manager of the Impax Climate Property Fund commented:
“Under the Energy Act 2011, from 2018 landlords will not be able to let properties with an EPC rating of F or G to new tenants. This legislation will mean that almost 20% of office buildings will become effectively unlettable. We plan to identify further opportunities in Manchester where we can renovate to the highest environmental standards and optimise space for occupiers. Ultimately this regeneration of assets benefits occupiers, investors and the wider region. Our proven approach has boosted total returns, or green alpha, for investors by 10 – 15% above other commercial property assets in the region.”
Impax already owns one Grade A office building in Manchester, 40 Spring Gardens where it has succeeded in reducing carbon emissions by 25% over the last 2 years. 40 Spring Gardens is located in the heart of central Manchester and has an EPC rating of “C”. Impax plans to bring a further 36,000 sq ft to the market in this building in January 2015, offering a total of 50,000 sq ft of available office space.
Jamie Bottomley, Senior Surveyor, National Office Agency at CBRE and joint letting agent on 40 Spring Gardens, said:
“Impax’s plans for further investment in Manchester are exciting. Importantly, their environment benchmarking demonstrates their ability to deliver and commitment to delivering green alpha. The improved environmental performance of 40 Spring Gardens has been clearly quantified. With the constrained supply of top quality office space in Manchester, we expect environmental performance to play an increasing factor in occupiers’ decision making, particularly for large Grade A occupiers”.
