Impax appoints EY to raise green alpha fund

Impax Asset Management has appointed EY’s real estate corporate finance team to raise a new green property fund.

Impax AM said it had appointed EY to “to provide strategic advice and support to the company’s sustainable property business” and is thought to be targeting between £200m and £300m of equity to invest into sustainable property in the UK. The AIM-listed investment manager’s property strategy is run by Esme Lowe and Tim Mockett, who joined from Climate Change Capital last July.

The company is looking to build on the UK government’s green agenda that will mean landlords will no longer be able to let properties with low energy efficiency ratings from 2018 as well as a gradually increasing interest in responsible investing amongst property investors.

Lowe and Mockett raised £69m at Climate Change Capital in 2009 which with leverage saw it invest £139m in four offices buildings, including 77 Gracechurch Street in the City of London.

Two assets have been sold and they continue to manage the Climate Change Property Fund at Impax.

Lowe said: “EY has deep expertise in strategic advice and capital raising in the real estate sector and we look forward to working with them to develop Impax’s client offering in this area.”

Ian Simm, chief executive of Impax added: “We are excited by the investment opportunities in the sustainable commercial property market where supply is low and demand is increasingly driven by ever tightening regulation and occupier preferences. There is a real opportunity to deliver green alpha for clients.”

“Sustainable buildings are increasingly commanding a rental premium, have shorter vacant periods, slower depreciation, reduced obsolescence, and typically command higher capital values. We believe that these market dynamics provide a compelling investment proposition.”