UK: Real estate investment manager Precede Capital Partners has received B Corp certification, signifying the firm’s commitment to ESG and responsible business practices.
Administered by the global non-profit organisation B Lab, B Corp certification is granted to companies which are part of a global community of businesses that meet high standards of social and environmental performance, transparency and legal accountability. While over 1,100 UK-headquartered businesses have now achieved B Corp status, as of February 2023, fewer than 40 of these firms were in the real estate sector, with an even smaller number of real estate investment managers.
Since launching in March 2021 with the backing of TowerBrook Capital Partners – the first mainstream private equity firm globally to receive B Corp recognition – Precede Capital has developed a proprietary Green Loan product to offer financial incentives to developers that mitigate the increased costs associated with building low-carbon, environmentally sustainable homes.
The firm’s broader ESG framework is focused on “instilling sustainability values into lending products and asset management services and also creating a values-led culture, with strong business ethics, which invests in human capital both inside and outside of the business”.
This year, the firm provided a £227 million whole-loan facility to Downing Living for First Street, a development in Manchester with heating provided by air source heat pumps, EV charging points and rooftop solar PV provision. Precede Capital is also facilitating one of Birmingham’s largest regeneration projects with its £188 million whole-loan facility to finance the Great Charles Street development, which is targeting BREEAM Excellent for its commercial areas and expected to achieve strong energy performance and a low Scope 1 and 2 emissions profile.
Karen Dunstan, general counsel and co-founder of Precede Capital, said: “We are acutely aware that the built environment has a unique role to play in tackling climate change, and have therefore built a platform with deeply embedded social and environmental values which guide our business strategy. Receiving B Corp certification was a milestone we were naturally determined to achieve. By continuing to provide developers with a financial incentive to meet pre-agreed sustainability targets, we can help support the creation of a truly sustainable UK residential sector.”
Randeesh Sandhu, CEO and co-founder of Precede Capital, said: “We founded Precede with the backing of TowerBrook Capital Partners, the first mainstream private equity firm in the world to receive B Corp recognition, and from the outset we have put ESG at the heart of our approach. Almost three years on, the business case for providing sustainable finance and lending opportunities is stronger than ever. With important regulation such as the Future Homes Standard on the horizon, it is critical that we continue to empower our partners and future-proof their projects, as part of the wider effort to deliver the new homes the UK urgently needs.”
