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Invesco Real Estate: ESG Real Estate case study - Casei Gerola Logistics Park
Along the A7 highway that connects Milan to Genoa sits the Casei Gerola Logistics Park. Designed by Italian architects SFRE, it’s now one of the most sustainable logistics developments in Europe.
Developed specifically for Invesco Real Estate’s European Value-Add programme, Casei Gerola Logistics Park is a flagship example of an "ESG compliant" real estate development. Built on the site of the Fornaci Laterizi Danesi (Danish brick kilns), the project was able to repurpose around 50,000m3 of debris from the demolition of the original building to backfill foundation excavations. This meant there was no impact on the surrounding agricultural land.
Hashing out the E, the S and the G – achieving LEED Platinum Certification
Invesco Real Estate, working with an external real estate services specialist, oversaw the environmental, social and governance (ESG) side. Together, they made sure that all the sustainability criteria needed to achieve LEED Platinum status were in place.
The Invesco Real Estate team, along with its external real estate services specialist, also pursued the pre-certification path to demonstrate its commitment to innovtion and sustainability and better introduce the project to the market.
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The project consists of two warehouse buildings. WHA, the smallest one, is around 20.852 sqm in size. Meanwhile, WHB is around 85.512 sqm, and is located on the same site.
The two buildings share site services such as green areas, a lamination basin, parking areas and a rainwater tank. The entire project is designed to achieve the maximum level of LEED certification.
Inside the warehouses, there are office spaces dedicated to administrative and service functions.
The buildings are equipped with high efficiency mechanical, electrical, and plumbing (MEP) systems, air-condensed heat pumps with high COP and EER, an LED lighting system with automatic controls, heat recoveries for ventilation with efficient filters, and PV panels installed on the roof.
Tap water usage has been reduced using low-flow equipment and rainwater is used for irrigation and flushing toilets. Additionally, the vegetation planted on the site doesn’t require much water. The design of green areas is focused on maintaining and integrating local biodiversity. Vertical green walls (walls with plants and greenery growing up them) have also been added. These will contribute to a further reduction in atmospheric CO2 emissions.
On the social side, the local community has been an important stakeholder in the process. The municipality will benefit from important urbanisation works. Not only that, but the development will also create more than 200 job positions and ancillary economic opportunities for the municipality and surrounding area.
“Casei Gerola Logistics Park represents a new high for ESG benchmarking and asset quality for the European logistics sector. It highlights our deep commitment to developing exceptional buildings and meeting fast-evolving investor and tenant demands head on.”
- Massimo De Paolini, Director, Investment Management - Italy, Invesco Real Estate
Why invest in value-add investment strategies with Invesco?
In periods of economic uncertainty, with pressure from the likes of rising inflation and rising interest rates, value-add investing seeks to take advantage of inefficiencies throughout the market cycle. An “all-weather”, relative value approach, it reduces reliance on macroeconomic factors. It can exploit tactical acquisition opportunities, acquiring assets at historically attractive entry pricing. Against this backdrop, we believe our value-add strategy could offer investors attractive opportunities.
Kevin Grundy, Managing Director – Fund Management, Invesco Real EstateChanges in market dynamics create opportunities, and value-add strategies thrive during periods of uncertainty. We believe that 2023 and 2024 could be excellent vintage years to take advantage of a generational re-pricing of the European real estate market.
Invesco Real Estate’s value-add strategies aim to deliver enhanced returns by utilising the strength of locally based teams to originate attractive opportunities. Business plans built around intensive asset management are designed to create or reposition differentiated assets for sale to the core market. We also integrate best-in-class ESG practices into the strategy.
To find out how you can invest in the strategy, please contact your local Invesco representative.
We place a strong emphasis on relative value. The flexibility to invest across all real estate product types throughout the capital structure, means our value-add and opportunistic strategies are positioned to act with speed and conviction. This means we can act quickly on the acquisition opportunities that arise during periods of economic uncertainty in Europe.
We seek attractive risk-adjusted returns consistent with sustainable investment principles, focusing on sectors in structural transition with opportunities to improve or create next generation real estate. In addition, we selectively invest in real estate operating companies where we believe there is compelling value to be created from vertical integration in an increasingly operational environment.
We have the flexibility to pursue opportunities across a range of sectors. This can include partnering with capital-starved operators in demand-led locations to create automated logistics properties with strong ESG credentials. We can also focus on residential locations with identified demand at discounted entry pricing. Furthermore, we can look to convert “stranded” office investments into attractive high ESG friendly buildings.
$91.4bn
$52.4bn
Founded in 1983$15.3bn
Founded in 1988$16.0bn
Founded in 1996$7.6bn
Founded in 2006Source: Invesco Real Estate (IRE) as of 31 December, 2022. $ = US dollars. Figures reporesent to Gross Asset Values of the invested assets under management.
With around $90 billion in AUM3, we’re one of the world’s largest real estate managers. Explore our global, regional, direct, listed and debt capabilities below.
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Investment risks
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The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Important information
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Views and opinions are based on current market conditions and are subject to change
Property and land can be difficult to sell, so investors may not be able to sell such investments when they want to. The value of property is generally a matter of an independent valuer’s opinion and may not be realised.