Barings European Real Estate Fund recognised as Sector Leader by GRESB
Barings, one of the world’s largest diversified real estate investment managers, has been named a ‘Sector Leader’ in its approach to ESG integration as part of the Global Real Estate Sustainability Benchmark (GRESB) 2022 results.
Achieving its highest GRESB scores to date, three of Barings’ European strategies, which comprise both core and value-add real estate investment, were among the highest performers among their peer groups, with five-star ratings.
GRESB Real Estate Assessment is the global standard for ESG benchmarking and reporting for listed property companies, private property funds, developers and investors that invest directly in real estate.
Barings European Core Property Fund, which has been participating in GRESB for six years, earned five out of a maximum of five green stars with a score of 90/100. This score is due to a number of long-term initiatives that the strategy has undertaken coming to fruition, including asset certification, reduction in energy intensity and greenhouse gas (GHG) emissions, installation of on-site renewables and tenant engagement. In addition, greater data automation resulted in improved scores across GHG, energy, water and waste reporting.
Barings Real Estate European Value Add I (BREEVA I) fund scored 95 out of 100 points, ranking seventh out of 26 in its peer group. Meanwhile, its successor fund BREEVA II scored 96 out of 100, ranking second out of 10. BREEVA II set an unprecedented initial score for its first year of participating in GRESB reporting and was recognised as a ‘Sector Leader’, whilst BREEVA I saw a significant improvement on last year’s four-star rating.
Barings approach to net zero carbon (NZC) was a key contributing factor towards improved ratings. Over half of current BREEVA II assets, and a third of BREEVA I assets are targeting NZC in construction and/or operation. NZC targets have been devised for all European funds, taking account of fund strategy and GHG Scope 1, 2 & 3, and asset level implementation plans are being devised to extend support to tenants and wider value chain. This approach will enable further improvements in reporting and will continue to strengthen Barings’ ESG integration.
Charles Weeks, Head of European and APAC Real Estate at Barings, said: “We have invested heavily into driving the ESG performance of our assets and strategies over recent years, and this recognition is a strong endorsement of this approach and the creativity and expertise of our ESG team, led by Kristina Arsenievich. With the market having entered a period of turbulence, our strong view is that ESG will continue to be crucial to long-term success and will remain central to our investment and asset management approach.”
Valeria Falcone, Head of European Value-Add Investing at Barings, said: “Part of the reason that our two closed value-add funds, BREEVA I and BREEVA II, have been so successful is their sharp focus on ESG. Our approach to value creation is cantered around embedding sustainability into everything we are doing and being classified as a Sector Leader is a great reward for the forward looking capabilities of our team, which is an invaluable competitive advantage”
Séverine Maumy-Laffineur, Portfolio Manager of Barings European Core Property Fund, said: “Our core real estate assets have ESG credentials at their very heart in a recognition of the needs and aspirations of occupiers and of institutional and private investors. Standards such as GRESB are doing vital work to ensure consistent benchmarking, meaning that investors understand where quality truly lies.”
Sarca 336
Acquired by Barings in 2020, this is a development project to build new, high-quality energy efficient Grade A office in the Bicocca district of Milan. The asset is targeting LEED Gold and Net Zero Carbon in both construction and operation, using recycled materials during construction, such as 90% concrete as well as utilising innovative ESG initiatives such as the active removal of carbon through the use of Eco2Air technology, helping to offset residual embodied carbon.
Tide
Tide Bankside is a build to core opportunity with planning consent to develop a 146,000 sq ft office in a prime location on the Southbank submarket in Central London. The property to be developed will be best in class in the London market, built to Net Zero Carbon in line with GLA and UKGBC requirements. The asset is targeting BREEAM Outstanding, NABERS five-star, WELL Enabled, Wired Score Platinum and Smart Score Platinum. Energy efficiency, tenant wellbeing and a positive social impact are at the core of this project.
The project is anticipating to deliver carbon emission value of 191 tonnes of CO2 per meter squared per annum. On the social side, at least 39 local residents will be offered construction training apprenticeships, whilst 12,916 sq ft of affordable workspace will be created.
Barings Real Estate
Barings Real Estate (BRE) is a part of Barings and offers a broad range of global investment opportunities across the private debt and equity investment markets. BRE invests in all major property sectors and offers an expansive range of financing solutions to real estate borrowers. Follow us on LinkedIn at www.linkedin.com/showcase/barings-alternative-investments.
About Barings
Barings is a $338+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment.
*Assets under management as of September 30, 2022