A leading real estate investment, development and management firm is fueling brown-to-green strategy formulation across three European capital cities.
Client story
Unlocking the ‘green premium’ with expert, data-driven advice
Categories:
Spotlight
Risk and valuation
Size
50 submarkets
Location
London, Paris, Berlin
With growing evidence of sustainability driving positive impacts on asset value and strong returns on investment, a global firm elected to bring its value-add commitment to strategic investments in office markets across several European cities. The end goal: To launch its brown-to-green fund and outperform the market.
How do you assess ESG value and risk across multiple submarkets?
The client's vision for its new brown-to-green investment fund required finding poorly performing assets across London, Paris and Berlin, then retrofitting and modernising them, with a particular focus on improving sustainability credentials. To achieve the ‘green premium’ in these cities, firm leadership turned to JLL for detailed data and insight to pinpoint where and how promoting ESG would drive returns.
But given the dynamic nature of each of these global cities, it would be extremely challenging to achieve that level of granular data across key submarkets within each one.
Insight-fueled ESG investment fuels resilience and returns
JLL’s deep dive identified the four best submarkets in each city—with green premium returns of up to 300 basis points identified in some submarkets. Layered on top of this was forward-looking insight for achievable green premiums in each location, using advanced valuation methodologies.
By understanding which submarkets could provide the greatest return on investment, the client is helping prove that shrewd green investment can pay off in more ways than one.