The Fund will seek attractive risk-adjusted returns from ground-up development, re-development and acquisition of high-quality life science properties located in established and emerging life science innovation clusters, with a focus on creating a world-class portfolio of Class A lab properties in what Breakthrough believes to be leading life science markets in the U.S. and Europe. The targeted investment profile for the Fund is Buy-to-Core, as described further below.
The Fund will apply the environmental and social characteristics 2. (Net Zero), 3. (Tenant Engagement Survey), and 4. (Resilience), as set out below, to all investments held by the Fund, except for debt investments. The Fund will apply the environmental characteristic 1. (Green Building Certification) to: (i) all investments held by the Fund which are transferred from Growth Portfolio II; and (ii) at least 75% of Buy-to-Core investments measured by gross asset value at time of acquisition, in each case except for debt investments. The above environmental and social characteristics will not apply to debt investments. The Fund anticipates that the proportion of the Fund’s capital commitments invested in debt investments will not be significant.
As set out in further detail below, the Fund intends that properties in its portfolio of underlying real estate will promote the following environmental characteristics:
- Green Building Certification: A proportion of fund ground-up development, redevelopment or refurbishment (“value-add”) projects will target obtaining a Green Building Certification within 24 months of completion of construction, redevelopment or refurbishment works. Please refer to the question “What is the asset allocation planned for this financial product?” for further information on which projects will promote this characteristic.
- Net Zero: Breakthrough Properties will conduct a net zero carbon audit for each building in the portfolio (core asset) within 24 months of acquisition, to determine a pathway for achieving whole-building operational net zero carbon by 2050 or sooner.
- Tenant Engagement Survey: Breakthrough Properties will conduct customer engagement surveys at all buildings in the portfolio, within a minimum of 12 months of occupancy by at least one tenant. Breakthrough Properties will repeat the customer engagement survey at least annually.
- Resilience: Breakthrough Properties will assess each building in the portfolio for acute and chronic physical climate risks upon acquisition and will prepare a climate risk mitigation plan within 12 months of acquisition.