nordanney
2024-07-04 08:01:07
- #1
This comes from several angles. It starts with supervision and reporting obligations regarding ESG, goes through green covered bonds as well as the valuation (already massive write-downs today, which will increase further) of the properties (e.g., keyword: stranded assets in commercial real estate, but it is also a portfolio management issue) and ends with the management’s desire to actively promote ESG development. Professional developers and portfolio holders have been interested in this for a longer time. KfW55 residential complexes are hardly marketable today; only KfW40 is built and traded (in the new construction sector). Every professional already assumes that even KfW55 will only be sold with discounts in 10 years. Who knows what politics will mandate next. In the Netherlands, for example, offices with energy efficiency worse than C are no longer allowed to be rented out as of today. From 2023, energy efficiency A must be present for rental (equivalent to a D here).What is the rationale behind this? Do banks now have to disclose how many loans they grant to energy-efficient buildings? Or are you afraid that energy prices will rise so much that the default risk of the property increases? Until now, no one cared, as long as the money kept flowing. Due to ESG criteria in the stock market, driven by BlackRock and others, this is slowly getting out of hand.