CDPQ, Nuveen Team Up for Sustainable Financing in Real Estate
A new sustainable financing programme has been launched for commercial real estate in the US.
Available in 40 states to support sustainable real estate projects.
CDPQ, a global investment group based in Quebec City, Canada, and Nuveen Green Capital (NGC), a leader in sustainable commercial real estate financing solutions in Darien, Connecticut, have partnered to create a $600 million financing programme.
The programme will support sustainable projects in the US commercial real estate market, which has two types of financing: C-PACE (which helps fund eco-friendly upgrades) and bridge and construction financing (short-term loans for real estate projects).
Real estate developers can now access funds for large projects through the programme and, at the same time, promote environmentally friendly practices. NGC is responsible for handling the financing programme.
“Developing greener buildings and reducing the carbon footprint of our built environment can create significant value. Through this distinctive financing program, we are able to accelerate the implementation of environmentally sound measures for commercial real estate owners and developers,” said Marc Cormier, Executive Vice-President and Head of Fixed Income at CDPQ. “We are excited to combine our long-term capital with Nuveen Green Capital’s extensive expertise to offer a sustainable integrated financing solution that fully aligns with CDPQ’s climate strategy and commitment to decarbonize the real economy.”
“CDPQ’s strong commitment to sustainability and track record of innovation align very well with our mission,” said Jessica Bailey, President and CEO, Nuveen Green Capital. “This program represents another exciting milestone for the C‑PACE industry and Nuveen Green Capital. We are thrilled to be working with CDPQ to build this one-stop shop for bridge and construction loans to meet the growing need for commercial real estate financing.”
C-PACE financing, available in 40 states, supports projects that improve energy efficiency, renewable energy use, water conservation, and resilience against climate issues. It also offers long-term funding options for sustainable upgrades in commercial buildings.
NGC has invested over $7 billion in several projects since it started the first successful C-PACE programme in 2014, helping the market grow. It was also responsible for 41% of all C-PACE financing deals.
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Source: CDPQ
