Sustainability conquers tangible asset investments

Munich, 20 February 2023 – The trend towards sustainable investments has now also reached tangible asset investments. Two major trends can be observed: “On the one hand, classic investments such as real property are increasingly being issued in sustainable versions”, says Daniel Knoblach, General Manager of Super Global GmbH. “On the other hand, an entire range of new specific topics have also emerged.”
In terms of real property, investments in both new construction and existing properties are being made almost exclusively from a sustainable perspective. “It is especially for these long-term investments that investors want to be on the safe side once even more regulation applies”, Knoblach adds. “In addition, ESG-compliant investments allow investors to implement their own climate action goals.” This is one of the most important considerations specifically for large institutional investors when they are launching a fund.

As far as the implementation of sustainable investments is concerned, classic sustainability projects such as wind farms or solar parks remain in high demand. “As has been shown once again in recent months, this is where sustainability and returns go together extremely well”, Knoblach points out.

Recently, other specific topics have been discussed that would not even have been worthy of attention without the climate debate. “We see enquiries, for example, for the development of charging infrastructures, for the development of decentralised storage solutions for green electricity or for the sustainable processing of sewage sludge”, says Knoblach. “There is often a lot of societal interest that goes hand-in-hand with building these infrastructures.” And private capital is already seeking investment opportunities in broad areas of these projects, even if they are not subsidised by the state.

Both (special) funds and certificates are suitable for making these topics investable and mobilising private capital for these tasks. More and more investors are turning to established securitizations, especially for topics related to tangible assets. “In this way, tangible assets can be issued as investable securities, making them investable, especially for pension funds or other professional investors”, Knoblach says. “Tailoring them with a view to the requirements of the Investment Regulation is particularly important for institutional investors.“

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