Investing
| Sector | Investing |
| Sub-sector | Office |
| Location | Netherlands |
Around 37 per cent of global energy and process-related emissions are generated by the construction and operation of buildings.1 With policymakers seeking to reduce the impact of the real estate sector on our climate and the environment, new building and energy efficiency standards have been introduced across several markets.1 Tenants are also taking steps to reduce their emissions footprint to align with ambitious corporate net zero commitments, looking closely at their operations and expressing a preference to lease more energy and resource efficient properties.2
The growing demand for this new type of real estate has coincided with a fundamental transformation of working practices. The role of workplaces is being redefined as rapid advancements in technology and the COVID-19 pandemic have encouraged more employers to embrace flexible working. As this trend accelerates further Macquarie believes office buildings will continue to play an important role in promoting workforce connectivity, collaboration, and productivity alongside employee wellbeing.
Observing these transformational shifts in the real estate sector, Macquarie Asset Management saw value in a platform which could develop prime office properties focused on design, sustainability, technology and wellness.
Founder and CEO, Coen van Oostrom, talks about Edge's mission from their Amsterdam Headquarters.
Edge’s specialist teams across Amsterdam, Berlin, Hamburg and London continue to evolve design standards in their respective markets. Prioritising the reduction, reuse and recycling of construction materials alongside the use of natural building products like timber, Edge is targeting a reduction of at least 50 per cent for embodied carbon emissions generated by its new projects.3 Edge is also seeking to reduce the operational carbon emissions of its new projects to almost zero, sourcing renewable energy to meet electricity needs, investing in geothermal heat-cold storage, and employing smart sensor technology to optimise properties for wellbeing and sustainability.3
While improving the operational performance of its buildings, Edge is investing to enhance the experience of tenants. Leveraging its technology and design-oriented approach, workspaces developed by Edge typically feature innovative architectural design, flexible meeting and event spaces, high-quality café and dining services, indoor and outdoor green spaces, fitness and hospitality services.
Outcome
While connecting its global network of institutional capital partners to support Edge’s development ambitions, Macquarie Asset Management is backing the company’s ongoing push into supplying operational efficiency solutions. The solutions, provided by Edge Next, offer clients innovative products to monitor the energy efficiency, occupancy, and wellbeing outcomes of their real estate investments. The technology will be increasingly important as property owners seek to retrofit older buildings to meet evolving environmental standards and tenant expectations.
Macquarie Asset Management is also supportive of Edge’s efforts to further reduce its environmental footprint. Today, all residual emissions at a corporate level and new projects are offset by Edge.3 By 2050 or earlier, Edge plans for emissions across its entire supply chain and operations to be reduced to absolute zero without the use of carbon offsets.
of global energy and process-related emissions generated by construction and operation of buildings1
year operating history
embodied and operational carbon emissions
target set by Edge for Scope 1, 2 and 3 carbon emissions by 20303
We are working with Edge to expand the business in existing and new markets while drawing on our investment management experience to assist with the build-out of its development pipeline.”
Brendan Jones
Macquarie Asset Management
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