$600M ESG Venture Acquires First Multifamily Asset For Conversion To Low-Carbon Building

The Canopy Villa Apartments in Orlando, the first property Aegon AM acquired as part of its $600M ESG-centric equity venture.
The Canopy Villa Apartments In Orlando, The First Property Aegon Am Acquired As Part Of Its $600M Esg-Centric Equity Venture.

Aegon Asset Management completed its first investment using a $600M ESG-centric equity venture that aims to acquire value-add multifamily assets and turn them into low carbon, energy-efficient buildings.

Aegon AM, in partnership with Taurus Investment Holdings, acquired a 296-unit complex in Orlando called Canopy Villa Apartments, it announced Thursday. Berkadia announced it arranged a $58.6M loan for the complex, which was built in 1981.

Aegon AM and Taurus will manage the asset and RENU Communities, a subsidiary of Taurus, will be in charge of a retrofit program to reduce the property's carbon emissions. The effort is part of the fund's strategy to focus on ESG — environmental, social and governance — initiatives, such as making buildings more sustainable.

The program will include energy efficiency upgrades, on-site renewables production and electrification of all services. The program will also allow for lower energy profiles and on-site energy production from solar panels.

RENU Communities Chief Technology Officer Chris Gray said the firm aims to reduce the property's carbon footprint by 50%.

"The simple reality is that existing buildings are often more inefficient as they age," Gray said in a release. "Given Canopy's 1981 vintage, there is a significant opportunity for RENU to enhance the property through our tailored retrofit program."

The deal was brokered by Berkadia Senior Managing Director Mitch Sinberg and Managing Director Matthew Robbins.

Aegon AM, an international asset management company, manages and advises $465B as of December, according to its website. Its global clients consist of pension plans, public funds, insurance companies, banks, wealth managers, family offices and foundations.

CORRECTION, JUNE 1, 6:15 P.M. ET: A previous version of this story misstated the acquisition price, which wasn’t disclosed. The size of the acquisition loan was $58.6M.

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