Balcor Companies, which has primarily described itself as developing commercial real estate market opportunities, announced a first step into the energy sector with a stake in Kaizen Clean Energy, according to a press release.
Balcor “maintains a diverse portfolio of products such as class-A mixed-use, retail, office, hotel, multifamily, tech, and frozen dessert,” the company says. “They continue to seek opportunities to deplore capital and add to their array of investments.”
“Founded in 2021, KCE is a future fuels-focused company, headquartered in Houston, TX, specializing in the design, development, and manufacture of hydrogen generators for decentralized power in transportation, power, agricultural, EV charging, municipalities, and hydrogen markets,” that company said.
The move into clean energy is a departure from previous investment areas. “Balcor’s Founder and Director, Chris Balat, expressed enthusiasm for the partnership, stating, ‘We are thrilled to make our first foray into the energy sector with Kaizen Energy as our trusted partner. Our association with Kaizen is a testament to our commitment towards a sustainable future, driving positive change in the world while delivering value to our stakeholders.’”
“We welcome our future collaboration with Chris and his team at Balcor,” Craig Klaasmeyer, Kaizen’s Co-Founder stated, was quoted as saying in the release. “Through our long-standing relationship with Balcor, we realize there is a shared vision of the potential for Kaizen to reduce global emissions.”
Balcor’s investment in Cloud 10 Creamery, a provider of “hand crafted ice creams and sorbets are produced in small batches, with unique flavors and premium ingredients,” is another example of how the company is diversifying outward from its CRE focus. But even a chain of ice cream shops fit the already existing Balcor hospitality division, which said it “complements the retail division and works to bring projects to term with responsible tenants, whether they are third-party tenants or tenants that are part of the Balcor brand.”
Clean energy, although it could potentially apply to existing properties to improve ESG ratings and potentially reduce costs of operations, seems a significant diversion. However, this type of diversification could be a way to hedge CRE risk, especially with markets as they currently are.