Investment manager Qualitas has released its findings from its ‘The Need for Sustainable Residential Buildings’ report.
It believes that providers of debt finance are in a unique position to be able to influence the issue of real estate emissions.
The company has declared its commitment to supporting a low emissions future and the progression of Environmental, Social and Governance (ESG) across the industry.
Qualitas aims to leverage its platform and position as an alternative commercial real estate financier – to help Australia transition to being low emission with a particular focus on the residential sector.
As part of its investment committee process, the company undertakes a rigorous assessment of the environmental credentials of all prospective investments using its ESG Assessment Tools.
It is now extending the use of this assessment to all Qualitas’ funds, providing the company with important data about the ESG profile and environmental impacts of its investments.
The recently launched Qualitas Low Carbon Debt Fund (QLCDF) is an impact-driven credit fund that provides development finance for sustainably aligned investments in residential real estate.
The fund offers sponsors two green pathways to achieving significantly lower emissions on a project, Green Star or a component pathway comprising of pre-defined individual national ratings and mandatory specifications, with oversight from independent third parties.
There are concessional pricing incentives for projects that meet the pathway requirements.
Qualitas is funding an increasing number of projects that are sustainably aligned. Brisbane’s first high-density Build to Rent development – Cordelia – was the seed investment in Qualitas’ first sustainable fund, the Qualitas Build to Rent Impact Debt Fund.
Cordelia is targeting a 5-star Green Star Design & as Built rating, an average NatHERS rating of 7.5 stars, and a National Australian Built Environment Rating System (NABERS) Energy for Apartments rating of 5 stars.
The development will feature sustainable design principles and features, delivering more than 35% reduction in GHG emissions compared to buildings built following the National Construction Code requirements.
Qualitas is also financing Caulfield Place, a scheme of two 14-level towers comprising 351 Build to Rent residential apartments in Melbourne’s southeast.
The development also incorporates strong sustainable design features and ESG credentials, including a 5-star Green Star Buildings rating with Qualitas’ facility incorporating terms and conditions linked to these features.
