Rest makes landmark investment in real estate climate impact fund

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Rest

Rest, one of Australia’s largest profit-to-member superannuation funds, is further diversifying its growing industrial property and impact investment allocations, positioning the fund to leverage increasing demand for energy efficient facilities across Europe.

The super fund has today announced it has signed on as a cornerstone investor in Fidelity International’s Fidelity Real Estate Logistics Climate Impact Fund (the LOGICs fund).

The LOGICs fund will focus on acquiring logistics properties across core Western European markets and redeveloping them into high-quality assets that can be operated at net-zero carbon. Through the installation of solar panels, they will also be able to generate renewable energy.

Andrew Lill, Rest’s Chief Investment Officer, said LOGICs stands out because of the way it invests and this is a great opportunity to make the most of market conditions to benefit Rest members.

“Rest is pleased to join Fidelity to launch the LOGICs fund as its cornerstone investor. We believe its focus on climate impact offers a fantastic opportunity to benefit Rest’s approximately 2 million members, including the more than a million who are younger than 30 and will retire into a post-2050 net-zero world.

“With logistics properties trading at attractive rates and demand for energy efficient facilities growing, we believe the LOGICs fund will drive rental yields and property values that should translate into strong financial returns while helping to speed up the path to a carbon neutral economy.”

The LOGICs fund seeks to add value by responding to a growing desire for quality, energy efficient assets in key markets including France, Germany, Netherlands and the United Kingdom.

The investment also brings Rest closer to its target of achieving a one per cent allocation to impact investments across its total portfolio by 2026. Rest defines ‘impact investments’ as investments made in members’ best financial interests, to provide a financial return and a social and or environmental return.

As a Sustainable Finance Disclosures Regulation (SFDR) aligned fund, the LOGICs fund aligns to a robust and transparent climate impact framework, with a clear goal for each asset to achieve net zero carbon emissions.

Decarbonising operations is becoming a priority for businesses and this is set to continue, said Lill.

“Around 40 per cent of total global carbon emissions come from real estate1. With eighty-five per cent of Europe’s buildings over twenty years old2, improving them provides a valuable solution to growing demand from businesses looking to move quickly towards net zero operations.

“Business demand for high quality logistics facilities is expected to grow as we continue to see the property sector respond to global decarbonisation priorities and other worldwide economic and geopolitical factors.”

Other drivers of demand include the re-onshoring of supply chains and the continued expansion of e-commerce retail, said Lill.

Andrew McCaffery, Global Chief Investment Officer, at Fidelity International, said the LOGICs fund serves as a great example of collaboration.

“The LOGICs fund launch is a great example of partnering with our clients to jointly develop solutions to meet their evolving investment needs.”

“With approximately €550m AUD 911.78m of deployable capital within our real estate climate impact strategies, we are excited by the opportunity to take advantage of current market conditions and deliver strong returns as well as tangible carbon reduction within an accelerated timeframe,” said McCaffery.

Rest’s impact investments include unlisted infrastructure-focused Palisade Impact Fund, specialist private equity firm ARCHIMED, agriculture centered Cibus II Fund and an international listed equities mandate with global investment manager Ninety One.

https://www.mckinsey.com/industries/real-estate/our-insights/climate-risk-and-the-opportunity-for-real-estate

https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_1836

About Rest

Established in 1988, Rest is one of Australia’s largest profit-to-member superannuation funds, with around two million members and around $80 billion in funds under management as at 31 December 2023.

This information has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, consider its appropriateness and the relevant PDS and TMD which is available at rest.com.au/pds. Issued by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003 (Rest), trustee of Retail Employees Superannuation Trust ABN 62 653 671 394

Rest media releases are point-in-time statements and are current as at the date of publication. Information may not be current and up to date after the date of publication. Please note the date of issue and check Rest’s website for other information on the same or related matters.

 

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