APPROACH AND METHODOLOGY
With this new commitment, OVG Real Estate will further export their substantial knowledge to cities around the globe through real estate development that is both financially and environmentally sound. They will act as an investor and developer of new buildings in environmentally sound ways and in the retrofitting of existing buildings to improve their resource efficiency.
Through this commitment, OVG Real Estate will launch the Global Climate Change Real Estate Development fund to invest in buildings that perform significantly better from a resource perspective than traditional buildings. This fund is intended to demonstrate the financial viability of investments in green real estate to serve as a replicable model for other companies and investors. To achieve its goals, the commitment maker will work together with the governments of the C40-cities and build solid local partnerships between investors, developers, and technology solution providers.
To achieve the goals of this commitment OVG will:
(1) Identify, attract and commit external investors for participation in the fund
OVG will target a diverse constituency of global investors, including institutional investors and pension funds, to participate in this fund. To finance the retrofit projects, the company will work with international financing institutions and banks to co-capitalize. They will involve the European Investment Bank and the World Bank, who both have active programs funding sustainable urban development and energy efficiency in the built environment.
(2) Build a global fund development management team
OVG will set up a subsidiary to support the management of the Global Climate Change Real Estate fund. New top-level specialists will be recruited, who will work under OVG's signature and personal leadership of CEO Coen van Oostrom.
(3) Actively approach and involve C40-cities
OVG will approach the C40 cities at the government level, to gain the best entry to the market and to focus on the development needs and best opportunities locally. They will work together with the Mayors of these cities and make available investments through the specialized fund. OVG hopes that they will be able to fill a void by connecting cities to investors they might not otherwise have access to and by opening up a new market for investors that are especially interested in funding retrofits, energy efficiency in buildings, and sustainable urban development. OVG will put on a road show in particular cities and hopes to leverage the CGI community to support this.
(4) Secure the partnerships with local real estate development companies and local governments
Since real estate is a locally organized market, it is important for OVG to team up with local real estate investors and development companies. OVG also aims to share best practices and lessons learned among local partners. They will use contacts in the government and business communities, to identify the appropriate local partners. OVG will also use their Young Global Leaders Network (sponsored by CEO Coen van Oostrom) to catalyze business and government partnerships. It is a high level network, providing a good insight in the innovators in the local real estate markets. The company already has partnerships in place in Amsterdam, Rotterdam and other related harbor cities in the C40-network, and Berlin. OVG aims to always work in joint-ventures while keeping the majority share of the development in its keep control and being the responsible end-party with regard to real estate development.
(5) Start large sustainable re/developments.
OVG will initially target the fund towards the re-development of inner-city commercial office buildings and multi-functional buildings, specifically those 20,000 sqm or larger, beginning in the European cities of Paris, London, Berlin, Madrid, Rome, Warsaw. Expansion to the global C-40 cities will follow. OVG has active contacts and is particularly interested in supporting sustainable development in Sao Paulo and New York.
IMPLEMENTATION, TIMELINE, AND DELIVERABLES
2011-2012: Identify, attract and commit external investors for participation in the Fund.
2012: Build a global fund development management team.
2012: Actively approach and involve C40-cities.
2012-2013: Build partnerships with local developers, financiers and technology/solution providers
2012-2016: Re/development of the buildings (acquisition land / buildings, design & development plan / execution & delivery.
Home to half the world's population and growing rapidly, cities consume over two-thirds of the world's energy and account for more than 70 percent of global carbon dioxide emissions. Since cities are a major cause of global climate change, they must be a key part of any solution. By renovating existing buildings and constructing new buildings in a more sustainable fashion in major urban areas, there is an opportunity to reduce a significant amount of greenhouse gas emissions globally. Retrofits are increasingly important since 90 percent of the carbon emissions from buildings derive from existing, old building stock.
OVG has significant experience that can be applied to this effort. In 2007, OVG launched its initial CGI commitment to invest $1 billion in the development of sustainable buildings in order to reduce their energy use by between 30 and 60 percent. This commitment resulted in the retrofitting of buildings so significantly as to reduce their carbon dioxide emissions by one megaton over the course of their lifetime. Besides these direct development activities, the initial commitment allowed OVG to act as a sustainable development incubator and role model in the European real estate market. The company launched a Sustainability Expertise Center, an internal knowledge center responsible for strategy, research, and development of their sustainability goals as well as an online platform to export their knowledge on sustainable real estate development.. In just a few months the online platform became the preeminent Dutch blog on green buildings.
In 2010, OVG completed its commitment in three years, two years ahead of schedule and is now using the knowledge that it gathered to expand its business throughout Europe, starting with Denmark, Germany, and Italy.
SEEKING: Financial Resources, Implementing Partners, Best Practice Information, Media/Marketing Opportunities
Global Real Estate Investors/Financiers, Green Technology/Solution provider, Local Real Estate Developers.
OFFERING: Financial Resources, Implementing Partners, Best Practice Information
Global Real Estate Investors/Financiers, C40-Cities.