Aegon AM is pleased to announce the successful completion of an equity investment for Canopy Villa Apartments, the first asset within its $600 million ESG-centric equity venture with Taurus to acquire value-add multifamily assets and considerably reduce the energy consumption and carbon output of those buildings.

Canopy Villa Apartments is a 1981 vintage, 296-unit apartment complex located in Orlando, Florida. Under the partnership, Aegon AM and Taurus Investment Holdings will leverage their multifamily value-add investment expertise to manage the investment, while Taurus’ subsidiary RENU Communities will apply its tailored retrofit program aiming to transition Canopy to a low-carbon, energy efficient building.

“Canopy Villa Apartments is a great fit for the value-add and energy retrofit strategy and we are very excited to kick off the venture with this closing,” said Alexia Gottschalch, Global Head of Client Strategy Aegon Real Asset and US Head of Equity Real Assets. “Aegon AM is committed to this one-of-a-kind decarbonization effort, which aligns with our net zero emissions target.”

Commercial and residential properties in the US contribute slightly over 30% of greenhouse gas emissions annually. The goals of the real estate investments and energy improvements made by Taurus’ RENU subsidiary include significant reductions in both energy use and operational carbon emissions, primarily through energy efficiency upgrades, onsite renewables production and electrification of all services. The program offers multiple potential benefits for both tenants and the property owner including a lower energy profile and onsite energy production via solar panels, as well as energy storage where possible. In addition, zero combustion of hydrocarbons onsite translates to better air quality for occupants and the surrounding community.

See related article: Vanguard Commits $290 Billion of Assets to Be Net Zero by 2050

“The simple reality is that existing buildings are often more inefficient as they age. Given Canopy’s 1981 vintage, there is a significant opportunity for RENU to enhance the property through our tailored retrofit program,” said Chris Gray, PhD., Chief Technology Officer of RENU Communities. “At Canopy we will aim to reduce its carbon footprint by more than 50%, greatly improving property operations and the quality of life for residents.”

Source: Aegon Asset Management (Aegon AM)