Unlocking Sustainable Real Estate Financing: A Transformative Partnership

In a groundbreaking move, CDPQ and Nuveen Green Capital (NGC) have joined forces to establish a $600 million financing program aimed at revolutionizing the way sustainable real estate investments are funded. This innovative program combines senior and Commercial Property Assessed Clean Energy (C-PACE) financing, empowering property owners to tackle the upfront costs of energy-efficient, water-conserving, and resilient projects, ultimately reducing the environmental impact of the built environment.

Powering a Greener Future, One Building at a Time

Bridging the Gap: Unlocking Sustainable Financing

The new financing program spearheaded by CDPQ and NGC addresses a critical challenge faced by property owners and developers – the upfront costs associated with implementing sustainable upgrades. By leveraging a combination of senior and C-PACE financing, the program provides a comprehensive solution that enables property owners to overcome this barrier and invest in energy efficiency, water conservation, renewable energy, and resilience improvements. This approach not only benefits the environment but also enhances the long-term value and performance of commercial real estate assets.

Transforming the Landscape: Driving Sustainable Development

The program's focus extends beyond individual projects, aiming to drive a broader transformation in the commercial real estate sector. By providing substantial, flexible, and committed capital for new large-scale construction and bridge financing, the program supports the development of sustainable buildings across key asset classes and markets. This holistic approach ensures that the environmental impact of the built environment is addressed at a systemic level, paving the way for a more sustainable future.

Aligning Sustainability and Profitability

The partnership between CDPQ and NGC recognizes the inherent value in developing greener buildings and reducing the carbon footprint of the built environment. By offering a streamlined financing solution, the program enables property owners and developers to unlock the financial benefits of sustainable investments, creating a win-win scenario for both environmental and economic outcomes. This alignment of sustainability and profitability is a crucial driver in accelerating the adoption of environmentally sound measures in the commercial real estate industry.

Pioneering the C-PACE Advantage

At the heart of the program lies the innovative C-PACE financing mechanism, which addresses a key disincentive for property owners to invest in energy improvements. By tying the debt to the property instead of the owner, C-PACE financing alleviates the concern that owners may not reap the full benefits of their investments if they do not remain in the property long enough. This structure empowers property owners to confidently pursue sustainable upgrades, knowing that the financial savings will accrue to the property itself, regardless of ownership changes.

Fostering Collaboration and Expertise

The partnership between CDPQ and NGC brings together a wealth of expertise and a shared commitment to sustainability. CDPQ's strong track record of innovation and its dedication to environmental stewardship align seamlessly with Nuveen Green Capital's mission and industry leadership in the C-PACE space. This collaboration creates a powerful synergy, enabling the program to leverage the best practices, resources, and insights from both organizations to deliver a comprehensive and impactful solution for the commercial real estate sector.