The Threadneedle Low-Carbon Workplace Trust (LCW) has secured a significant equity commitment from The Townsend Group, a premier provider of global real estate investment solutions.

The Threadneedle Low-Carbon Workplace Trust (LCW) has secured a significant equity commitment from The Townsend Group, a premier provider of global real estate investment solutions. Together with an additional equity commitment LCW is at £100m.

Launched in 2010, LCW is a partnership between Threadneedle Investments, a leading UK property investment manager, Stanhope, one of the UK’s leading commercial real estate developers and the Carbon Trust, a not-for-profit company with the mission to accelerate the move to a low carbon economy.

LCW capitalises on the growing demand from investors for socially responsible investment opportunities, which also possess the attributes for delivery of outperformance, as well as the growing demand from occupiers for workplaces that deliver efficiency in use, both in terms of lower carbon outputs and reduced occupancy costs. It looks to refurbish properties to best practice low carbon standards and uniquely offers occupiers ongoing advice and support to ensure the building’s energy efficiency specification is achieved in-use. It targets outperformance for investors through generating strong returns from its refurbishment activities, in addition to completed low carbon properties satisfying the considerable demand from high quality occupiers, delivering a secure, long term income stream to investors from its investment portfolio.

LCW currently has a portfolio of four projects which are: Premier House, Twickenham; Grove House, Hammersmith; Mansel Court, Wimbledon and The Billings, Guildford. The Billings will officially be launched as the UK’s first completed low carbon workplace in February and is already occupied in part by Investec Wealth and Investment Ltd. The forecasted return on equity across the four projects is well in excess of 20% against fund target of 15%. In addition, LCW is in advance stages of securing two more projects.

Damien Smith, Principal of The Townsend Group comments: “This strategy is extremely relevant in promoting both responsible investment, which we are committed to under the United Nations PRI, and importantly providing occupiers with efficient modern workspace and lower occupancy costs. This investment is consistent with our objective of working with and investing alongside management teams who focus on active property management and have track records which provide investors with excess returns above market.”

Don Jordison, Managing Director of Threadneedle Property said: “We have reached critical mass with LCW. Since its launch 18 months ago, LCW has rapidly completed the acquisition and refitting of four buildings and secured high quality tenants. Townsend’s investment further validates the strength of the investment case for this fund.”

Tom Delay, Chief Executive of the Carbon Trust, said: “This is great news and a major shot in the arm for the sector. With this new investment and with LCW’s first building scheduled to open in a matter of weeks we believe the market for low carbon commercial properties is now well and truly open.”

David Camp, CEO of Stanhope, said: “With projects delivered and occupiers secured combined with the endorsement of such an important investor, we are now well advanced in establishing an industry norm for low carbon refurbishment.”