SUSTAINABLE DEVELOPMENT

SUSTAINABLE FINANCING, ESG STRATEGIES, ASSET POSITIONING

UK property development is at a critical juncture: the country is battling historically low housing stock, evolving environmental concerns and a shifting demographic.

In one light, the industry and its financial backers face insurmountable challenges; in another, there are endless opportunities—including plenty of low-hanging fruit. One thing is sure: the property development market needs to take significant steps to become more sustainable.

When done right, sustainable or environmental, social and governance (ESG) strategies address global environmental challenges and contribute to cost savings, social equity, tenant and employee health and well-being.

The increasing focus on ESG presents various opportunities and risks for equity investors and debt funders. Hexagon anticipates that property assets - residential or commercial - that do not fit the ESG narrative will find it increasingly challenging to attract competitive loan and/or equity terms.

Without proper planning, asset owners risk holding specific properties that will eventually become obsolete regarding “bankability”. 

Together with property asset management teams, we advise and support property asset owners to develop fully-costed ESG strategies and business plans to attract the most competitive equity and debt funding sources.

We advise and support equity investors and debt funders in understanding how to apply sustainable/ESG criteria to their current and future property exposures and achieve sustained returns from the asset portfolios they have lent against or invested in that align with ESG investment strategies.