PERE: Pursuing real estate’s green premium

Actis Partner and Head of Real Estate, Brian Chinappi, and Actis Director, Sustainability, James Magor, both spoke with Barclay Ballard of PERE for his piece on green real estate and how investors and asset managers are creating value in the sector through ESG and sustainability initiatives. Click here to read the full article and read on below for comments from Brian and James.

Brian Chinappi, Partner, Head of Real Estate at Actis, commented:

“We’re at a point with most asset types and in most markets where it’s no longer more expensive to build green. More importantly, the risks to occupancy and exit of not doing so is too great. Admittedly, if you want to do something more innovative, you may encounter delays, regulatory challenges and additional costs. Detailed sustainability reviews and cost benefit analyses are essential when you’re looking to push the envelope but more generic green building initiatives are pretty commonplace now across markets.”

James Magor, Director, Sustainability at Actis, said:

“Broadly, the industry is consolidating around energy, water and embodied carbon. Green building initiatives that drive improvements in those areas are likely to be important factors in valuation.

“Tenants and investors today are highly attuned to greenwashing. If you’re using, say, superficial green design measures for points-scoring, people are starting to see through this.”