Brookfield Takes the Lead in Global Net-Zero Fundraising

The reportedly largest CRE fund designed specifically to address net-zero property development was announced this week by Brookfield with the launch of its $15 billion global transition fund (BGTF).

The fund includes investments from institutional investors, as well as amounts reserved for the private wealth channel.

Demand for the fund significantly exceeded its initial hard cap, and the final fund size was oversubscribed. 

A diverse group of more than 100 investors from around the world committed to BGTF.

Last month, GlobeSt reported that Brookfield Property Partners isn’t waiting for the SEC to clarify its new climate-related ESG disclosure rules when it comes to transparency of carbon emissions by announcing a five-year agreement with its sister company, Brookfield Renewable Partners, to supply renewable energy to the flagship office tower at its mammoth Manhattan West development.

Investing in Decarbonization Technologies

BGTF invests in the transformation of carbon-intensive industries, as well as the development and accessibility of clean energy sources.

Approximately $2.5 billion has been deployed or allocated from the fund to date, spanning a range of decarbonization technologies with investments at significant scale. 

Connor Teskey, CEO of Brookfield Renewable, said in a prepared statement that investor demand for this fund has been “exceptionally” strong.

“Brookfield has been reliably investing in renewable power for decades, and we are uniquely well positioned to be both a capital provider and an operating partner to the world’s major businesses as they accelerate their decarbonization plans,” Teskey said.

GlobeSt.com last month reported that building owners and landlords soon will be required to certify they’re meeting decarbonization targets required by a slew of new city and state laws aimed at reducing the carbon footprint of buildings, which make up an estimated 40% of global greenhouse gasses.