Sustainable Finance Disclosure Regulation
Sustainable Finance Disclosure Regulation (SFDR)
SFDR, enacted in March 2021, is an EU regulation promoting sustainability in financial markets. It requires financial market participants, including real estate funds, to disclose information about their ESG policies and processes and the sustainability impact of their investments. Compliance with SFDR helps investors make more informed decisions, fosters responsible investment practices, and contributes to the overall sustainability objectives of the European Union.
Gain Investor Trust: Being SFDR compliant showcases our commitment to transparency and accountability. By disclosing our ESG policies and the impact of our investments, we build trust with investors who seek responsible opportunities.
Attract a Diverse Investor Base: SFDR compliance opens doors to a broader range of investors. Institutional investors, in particular, have stringent ESG requirements. By aligning with SFDR, we welcome these investors and expand our potential investor pool, increasing our market competitiveness.
Mitigate Risks: SFDR compliance means taking a proactive approach to identify and manage ESG risks. By conducting thorough due diligence on climate, social, and governance factors, we safeguard our investments against potential vulnerabilities. This protects our fund’s long-term performance and ensures resilience in a changing world.
Align with Global Standards: SFDR aligns with internationally recognised frameworks like the UN SDGs and TCFD recommendations. Complying with SFDR demonstrates our commitment to these global sustainability objectives. It’s not just about ticking boxes; it’s about leading the way toward a more sustainable future.
Stay Ahead of Regulations: SFDR is not just a choice; it’s a regulatory requirement. Non-compliance can result in penalties and reputational damage. By being SFDR compliant, we stay ahead of the game, meet our legal obligations, and ensure a smooth journey in a rapidly evolving regulatory landscape.
SFDR compliance is not just a checkbox exercise. It’s a driving force that propels us toward sustainable success. By embracing SFDR, we attract investors, manage risks, and contribute to a better future.
Strategic Overview
In the last decade, we have built a portfolio of £900m AUM (assets under management) in the Residential Living sector, with a clear strategy to reach £1.5bn by 2030.
Purpose-Built Student Accommodation (PBSA) – Iberia
Business Objective and Market Summary
Partnership objective: Build a portfolio of Spanish and Portuguese PBSA assets in local cities with strong market characteristics, leveraging existing Amro development & operational capabilities – Amro has (£300m GDV) in the pipeline.
Market opportunity: In Spain and in Portugal, there is a strong market opportunity for PBSA. Strong market opportunity in Spain and Portugal: lack of PBSA provision and poor existing product, increasing English-taught programmes (“ETP”) at Universities, narrowing the gap between residential rental pricing and existing PBSA rents, relative attraction of European Universities (lower tuition fees, ease of obtaining visas, lifestyle, improving competitiveness, etc.).
Growth phase: The primary markets across Europe are under-supplied. However, each country is at a different level of maturity. Spain and Portugal present attractive growth markets due to the low provision of PBSA, proven rental levels, and lower delivery costs.
Strong pipeline: Amro is well positioned to deliver pipelines in Tier 1 and 2 Spanish cities, including Madrid, Barcelona, Valencia, Granada, Seville, Malaga, Santander, Bilbao, Pamplona, Alicante, and other key University cities.
Code of Ethics
The Code of Ethics of the Company is not designed to supersede laws and regulations in force.
The Code of Ethics sets out the Company’s standards of ethical conduct. It applies to all employees of the Company, including the Conducting Officers.
The purpose of the Code is to assist each employee and Conducting Officer in making decisions about his/her conduct regarding the Company’s business. Should he/she have any doubts about the interpretation of the Code, he/she shall contact the Compliance Officer, who is responsible for monitoring and following up on the Code.
They should seek guidance whenever they doubt the applicability of any law, rule, or regulation regarding any contemplated course of action. The Company holds information and training sessions to promote compliance with laws, rules, and regulations.
The Board approves this Code of Ethics.
Stewardship
i. “We commit to net zero carbon 2025 for all new investments
ii.” We apply a ‘fabric first’ approach to prioritise sustainability targets and utilise ‘whole-life carbon impact’ assessments to evaluate our projects.”
iii. “Our venture capital arm invests in start-ups that accelerate the transition of the built environment to Net Zero.”
iv. “We seek to invest in climate-tech and Greentech solutions that enable accurate disclosure, evaluation and risk mitigation.”
Smart Goals
i. “Our data-driven decisions drive openness and resilience.”
ii. “We forge transparent, long-term professional relationships with our investment partners, associates and team members.”
iii. “We invest in Proptech and Fintech start-ups that enable actionable ESG reporting.”
Values
Ami Kotecha, Co-Founder and Group President of Amro, states, “I am passionate about sustainability and drive our commitment to developing projects that meet the highest sustainability standards in the sector.”
Read more about our ethos and values HERE.