Green to gold: realising opportunities from the carbon transition – Columbia Threadneedle Investments

The potential for real estate to deliver green energy infrastructure is often overlooked. Columbia Threadneedle Investments explore the interventions required to monetise green energy, and how investors might benefit from the carbon transition.

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... At Columbia Threadneedle Investments they have long been vocal in their view that decarbonisation presents a positive opportunity to align environmental and financial outcomes. Incorporating green energy infrastructure into the development and refurbishment of their assets reflects the tactical implementation of that strategic conviction.

Future-proofing assets to align with occupiers’ green ambitions demonstrates good stewardship and offers significant potential to add value to existing land and buildings. Through the delivery of green energy to occupiers and wider communities they are able to generate additional revenues for investors. The two principle drivers of value are power generation, primarily derived from rooftop solar photovoltaic panel installations, and power provision, typically through electric vehicle charging.

Revenues can also be derived through power storage (batteries), leveraging the arbitrage in the electricity price differential at various points in the day, although this is less tested and typically attracts higher capital costs. Additionally, Columbia Threadneedle Investments see opportunity through traditional refurbishment and development initiatives to deliver an enhanced specification to the occupational markets, and benefit from greater rental growth.

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