12 June 2009

Climate Change Capital Property Team Makes Second Purchase

(London - 12 June 2009) Climate Change Capital (CCC) is buying 3-5 Morrison Street, Edinburgh from Hermes Property Unit Trust for £23.9m. This is the Climate Change Capital property team's second purchase this year, and takes their investment in the UK market to around £55 million.

Tim Mockett, joint managing director of CCC's property team, said: "We are actively looking for more commercial buildings in the UK's big cities and London. Our strategy is to work with the occupiers of our buildings to achieve improved sustainability and reduced operating costs to the benefit of all parties. We look at all energy efficiency measures."

Joint managing director Esme Lowe said: "Our second purchase, like our first, is a high quality asset, let to first class tenants and now we may look at higher risk profile opportunities as part of our ongoing investment programme."

The Edinburgh property comprises 57,000 sq ft of Grade A office space, let to Franklin Templeton Global Investors until 2021 at a passing rent of £1,561,000 (£27 per sq ft), 5,000 sq ft of retail space, let to Sainsbury's until 2022 at a passing rent of £86,400 (c. £18 per sq ft), and 14,500 sq ft basement cinema, let to Odeon until 2028 at c. £15 per sq ft. The net initial yield is 7.39%.

Chris Mathew, Fund Director of Hermes Property Unit Trust commented: "This type of investment is selling particularly well in the current market given investor appetite for long leases on good quality assets. This was a tactical sale in accordance with portfolio strategy to target assets with higher risk adjusted returns."

King Sturge LLP acted on behalf of Hermes Real Estate and Knight Frank acted on behalf of Climate Change Capital in this matter.

The purchase was off market.

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ENQUIRIES:

Climate Change Capital

Debbie Leitner         +44 (0)20 7939 5319            dleitner@c-c-capital.com

NOTES TO EDITORS:

About Climate Change Capital Group

Climate Change Capital ("CCC") (www.climatechangecapital.com) is an investment manager and advisor specialising in the opportunities created by the transition to the low carbon economy. Its activities aim to make the world's environment cleaner while delivering attractive financial returns.

  • Fund Management: Develops and manages investments in companies, projects and technologies that provide products or services facilitating climate change mitigation or adaptation. CCC has US $1.5 billion under management, as of April 2009 and focuses on the five alternative asset classes of, Carbon Finance, Private Equity (CPE), Listed Equities, Property and Energy Infrastructure.
  • Advisory: Provides financial, strategic and policy advice to energy-intensive industries, financial institutions, clean technology companies and governments.

Through the combined talents of investment professionals, market specialists, and thought leaders we reconcile economic gain with environmental benefits without compromising implementation, discipline, client focus and accountability. We call this Creating Wealth Worth Having®.

5 Morrison Street

External façade View from Morrison Street Boardroom

 

View from Morrison Street Boardroom

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