Taurus Investment Holdings and Aegon Asset Management Close Investments Through ESG-Centric Partnership
Situated in the booming Tampa and Orlando submarkets, the additional investments will focus on decarbonization retrofits through Taurus affiliate, RENU Communities
MultifamilyOct 27, 2022
Taurus Investment Holdings and Aegon Asset Management Close Second and Third Multifamily Investments Through Recently Established ESG-Centric Partnership
Boston, MA – Oct. 27, 2022 – Taurus Investment Holdings, LLC (Taurus), a global private equity real estate firm and Aegon Asset Management (Aegon AM), the asset management arm of Aegon N.V., are pleased to announce today they have completed the recapitalization of two multifamily properties, Lofton Place Apartments and Rosemont at Windermere, through their recently established ESG-centric decarbonization venture. Totaling 640 units, Lofton is situated in the Carollwood submarket of Tampa with Rosemont located in the Universal submarket of Orlando.
Both Taurus and Aegon AM understand the urgency for real estate owners and operators to assume a larger responsibility for climate change and recognize the long-term value that can be created from assets with lower carbon emissions. Taurus affiliate, RENU Communities will evaluate and apply its tailored retrofit program aiming to significantly reduce the environmental impact of the properties, and transition the assets to low-carbon, energy efficient buildings. Plans for both assets include replacing all HVAC units with air-source heat pumps, swapping electric water heaters with heat pump water heaters, upgrading water fixtures, implementing an energy monitoring system in each unit, upgrading lighting and installing solar panels.
Taurus and Aegon AM’s first ESG-centric deal, Canopy Villa Apartments, is currently underway with a custom RENU retrofit. HVAC replacements within all units and solar installation are expected to be complete by year end 2023. The full RENU scope is targeting completion within Q1 2023.
“Our goal from the start of this venture with Aegon AM has always been to decarbonize properties in a way that is beneficial to all parties,” said Peter A. Merrigan, CEO of Taurus. “Residential and commercial properties in the U.S. contribute over 30% of greenhouse gas emissions annually. Yet, with that challenge, we recognize an opportunity to improve value for our clients, while creating sustainable assets that are both healthier for the environment and resilient against the energy cost volatility.”
Aegon Asset Management, the global investment management brand of Aegon N.V. a leading financial services organization based in the Netherlands, managed $328 billion in assets as of June 30, 2022, with real assets under management/advisement of approximately $25 billion.
“We are delighted to continue our decarbonization venture with Taurus with these most recent closings. Both Lofton and Rosemont are an excellent fit for our strategy to combine traditional multifamily value-add renovations with an energy efficiency business plans. The properties are located in markets we’ve identified as target markets based on our demographic and economic growth indicators,” said Alexia Gottschalch, Aegon AM’s US Head of Real Assets Equity and Global Head of Client Strategy-Alternatives. “With these closings, Aegon AM continues to focus on creating quality, energy-efficient, affordable, market-rate properties for apartment renters.”
Both Orlando and Tampa feature booming job markets and rank amongst the top multifamily markets in the U.S., with active infrastructure projects already underway between the two cities make appeal and growth potential uncapped. The combination of rising resident incomes, overall rental rates within each submarket and a proven decarbonization program have positioned each asset well for future value-creation. The assets will benefit from a cleaner and healthier environment, as well as providing long-term value and insulation from cost volatility.
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