Aegon AM and Taurus, through Taurus’ sustainable retrofit subsidiary RENU Communities, aims to significantly reduce carbon emissions across the venture’s portfolio, starting with Orlando multifamily asset
BOSTON, March 23, 2022 (GLOBE NEWSWIRE) — Taurus Investment Holdings, LLC (Taurus), a global private equity real estate firm and Aegon Asset Management (Aegon AM), the asset management arm of Aegon N.V., are pleased to announce today that the firms have entered into four-year/$600M ESG-centric venture to acquire value-add multifamily assets and considerably reduce the energy consumption and carbon output of those assets. Seeking to leverage the Taurus and Aegon AM track record of executing multifamily value-add investment strategies the parties to the venture will manage the investments, while the Taurus’ subsidiary RENU Communities, will evaluate and apply its tailored retrofit program aiming to transition the assets to low-carbon, energy efficient buildings. The projected initial investment of the equity venture will start with the recapitalization of Canopy Villa Apartments, a 1981 vintage, 296-unit apartment complex located in Orlando, Florida.
As conscious stewards of investors’ capital, both Aegon Asset Management and Taurus understand the urgency for real estate owners and operators to assume a larger responsibility in reducing carbon emissions. RENU will work to link traditional real estate investment with the market’s growing desire for electrification and decarbonization, providing turnkey energy efficient retrofits of existing real estate assets.
“Taurus and Aegon AM have made a commitment to building a business that delivers returns to our investors, while also positively impacting both society and the environment, so it only makes sense to partner for this substantial decarbonization venture,” said Peter A. Merrigan, CEO of Taurus. “RENU has already proven to be a leader in addressing carbon emissions in existing buildings, and its work across this portfolio will further show our innovative ability to decarbonize properties in a way that is beneficial all parties.”
Commercial and residential properties in the US contribute slightly over 30% of greenhouse gas emissions annually. The real estate investments and energy improvements made by Taurus’ RENU subsidiary in this venture will target significant reduction in both energy use and operational carbon emissions, primarily through energy efficiency upgrades, onsite renewables production and electrification of all services. The benefits of this program are multi-faceted for both the occupant and the property owner: the lower energy profile limits the impact of rising or volatile energy prices on occupants; onsite energy production with solar panels combined with energy storage, where possible, raises resilience and energy independence for the property; and zero combustion of hydrocarbons onsite translates to better air quality for occupants and the surrounding community.
Aegon Asset Management, the global investment management brand of Aegon N.V. a leading financial services organization based in the Netherlands, managed $466 billion in assets as of December 31, 2021, with real assets under management/advisement of $30 billion.
“The strong return potential and durable cash flows of the multifamily value-add strategy paired with this accretive, one-of-a-kind decarbonization initiative aims to set the standard for a new way to approach these investments,” said Alexia Gottschalch, Global Head of Client Strategy Aegon Real Asset and US Head of Equity Real Assets. “There is strong alignment of the Aegon AM and Taurus teams in our focus on investment returns, portfolio construction, and meaningful ESG targets.
Evercore Real Estate Capital Advisory, an investment banking advisory firm, acted as exclusive financial advisor to Taurus in connection with the transaction.
“We are delighted to help bring together Taurus and Aegon AM, both with successful track records in multifamily investing, to join forces and pursue a value-add multifamily strategy with a decarbonization approach,” said Yan Ling, Managing Director of Evercore. “With this impactful partnership, these like-minded firms are reinforcing the outlook that investment returns and environmental sustainability go hand-in-hand.”
About Aegon Asset Management
Aegon Asset Management’s 380 investment professionals manage and advise on assets of $466 billion (as of December 31, 2021) for a global client-base of pension plans, public funds, insurance companies, banks, wealth managers, family offices and foundations. We organize our investment capabilities around four focused investment platforms where we have extensive asset-class expertise: fixed income, real assets, equities and multi-asset & solutions. Each platform has dedicated teams, organized globally and committed to maximizing their specialist areas. These platforms are supported by teams dedicated to responsible investing and multi-management. www.aegonam.com
About Taurus Investment Holdings, LLC
Established in 1976, Taurus is a global real estate private equity firm with over 45 years of experience as a general partner, investor, and operator. By empowering and combining the strength of in-house experts in the fields of multifamily, office, logistics, mixed-use, and renewable energy, the firm has created targeted, scalable investments into value-add, core-plus, and development opportunities.
Taurus is focused on using innovative energy efficient technologies to make the extensive infrastructure investments required to decarbonize residential and commercial buildings through its EcoSmart Solution and RENU Communities affiliates.
Throughout North America and Europe, Taurus is consistently recognized as one of the premier owners of both directly managed and joint venture commercial real estate. To date, Taurus has purchased and developed more than 65 million square feet of residential, office, industrial, retail and other commercial real estate assets throughout the world with a total acquisition value of over $9.25 billion. www.tiholdings.com.
About Evercore Real Estate Capital Advisory
Evercore (NYSE: EVR) is a premier independent investment banking advisory firm with 1,800 employees and a global presence in the Americas, Europe and Asia. Within Evercore, Real Estate Capital Advisory (RECA) is an integrated real estate platform which provides a broad range of advisory services to real estate sponsors and limited partners. RECA raises capital from institutional investors and provides strategic advisory for a variety of private real estate vehicles, including commingled funds, joint ventures and separate accounts, focused on a wide range of sectors, geographies and risk/return profiles. RECA has longstanding relationships with over 3,000 institutional investors globally and has successfully advised first time real estate sponsors on entering the market and existing sponsors on new product offerings and on diversifying their capital base. In addition to raising capital for private real estate vehicles, RECA develops bespoke advisory solutions for real estate sponsors through private M&A transactions, recapitalizations, asset-spin-outs and restructurings. www.evercore.com
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