European managers found to be lacking in green properties

Article by Jane Roberts

European fund managers have a long way to go before they can call themselves sustainable, according to a leading foundation of investors. The Global Real Estate Sustainability Benchmark (GRESB), set up by some of real estate's largest institutional investors, this month published data on the 2010 performance of 340 funds and property companies, 194 of them from Europe...

Two exceptions in the UK were funds managed by Climate Change Capital and Capital & Regional. Climate Change Capital's Tim Mockett and Esme Lowe have taken the first steps towards returning capital to investors, selling one of the fund's four buildings, 77 Gracechurch Street, over the summer after receiving off-market approaches from would-be buyers.

Lowe says they felt the investment market had become more "risky and volatile" and selling the City building "enabled us to return money to our investors at what we felt was a sensible time to be de-risking".

It is thought investors have had about 40% of their equity back.

Climate Change Capital Ltd: Registered in England Number 5191608 Registered Office: 3 More London Riverside, London, SE1 2AQ
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European managers found to be lacking in green properties