Ethical investment firm Bridges Ventures has announced the first closing of its new Sustainable Property Fund with initial equity commitments of £26m.  With the use of gearing, this gives the Fund an immediate investment capacity of over £50m. 

The Sustainable Property Fund aims to deliver financial returns to investors, as well as wider social and environmental benefits. The Fund will invest in a range of value-added asset management and tenant-led developments such as:

• Acquiring older buildings and renovating them to meet higher environmental standards.
• Undertaking development of new space that shows environmental leadership, typically for specific tenants and owner occupiers who seek accommodation which meets high environmental standards.
• Investing in regeneration areas.

Michele Giddens, executive director of Bridges Ventures, said, “The importance of greening the property market is huge.  We have also seen from our own experience the impacts that revitalising buildings can make in regenerating low income areas and creating liveable neighbourhoods.”

The Fund’s first close was achieved largely with the support of  investors that have backed previous Bridges Ventures funds, including the West Midland Pension Fund, Co-operative Financial Services, the R&S Cohen Foundation and SHINE, as well as private investors such as Sir Harry Solomon and Vernon Ellis. New backers include Merseyside Pension Fund. Bridges Ventures hope the fund will grow substantially over the coming year and beyond.

Simon Ringer, managing director of the Sustainable Property Fund at Bridges Ventures, said, “The financial backing that we have received from a wide range of investors at this first closing demonstrates that there is demand from an increasing range of investors who seek to support property projects that generate positive environmental and regeneration impact, without compromising financial returns.”

Bridges Ventures has made a number of investments in property based businesses through its other funds included the boutique hotel The Hoxton and The Gym.