Reneo, the Hamburg based “single-source solution” for cost-efficient, large-scale decarbonisation of residential real estate, announced it amassed a €600 million capital platform “to identify and realise the ecological and economic potential of stranded real estate assets.”
“Stranded assets” are older buildings or property portfolios whose value decreases due to sustainability and efficiency requirements.
The company said it has secured €45 million in equity financing from European investment funds including Eurazeo, Lakestar and Foundamental, the family businesses Goldbeck and Bauwens, as well as business angels including Stefan Wiskemann and Fabian & Ferry Heilemann.
“The funds were raised through several capital increases: while the most recent Series B financing round was led by Eurazeo, Lakestar took the lead in the previous Series A …” said Reneo.
“With the residential market gaining momentum and a robust outlook offering compelling investor value, Reneo is pleased to announce the formation of an asset management and operating joint venture with Peakside Capital, an independent, owner-operated real estate investment manager.
“This partnership comes in addition to an existing senior financing arrangement Reneo has in place with Goldman Sachs.
“Through the new joint venture, Reneo will partner with Peakside to deploy around €500 million in debt and equity to upgrade and enhance the energy efficiency of multi-family houses.
“Reneo will leverage its real estate expertise and technology-led, programmatic approach to comprehensively modernise buildings with poor energy efficiency in a scalable and cost-efficient way, substantially lowering their carbon footprint and energy consumption, while supporting cost savings for tenants and unlocking value-add potential for investors.
“At the same time, it will convert under-utilised spaces into modern, efficient living environments that meet growing demand for housing.”
Reneo founder and co-CEO Lennart Börner said: “We are investors in mind – climate stewards at heart.
“Reneo is the only player tackling decarbonisation with a holistic lens, turning climate challenges into investor opportunities. With Germany’s real estate sector ripe for transformation, we see immense potential to drive both climate impact and economic value.”
Founder and co-CEO Alexander Graubner-Müller said: “Our end-to-end solution streamlines the entire green building journey and combined with our outstanding track record, makes us the go-to partner for those who want to maximise both sustainability and returns. We are excited to team up with such strong partners who share our vision for a greener future.”
Reneo said that since 2020, it has bought and sold more than €500 million of assets across its platform.
Boris Schran, partner at Peakside, said: “Real estate is one of the few remaining sectors where the challenge of decarbonisation and meeting net zero targets is yet to be fully addressed.
“After a thorough market screening in order to find the best partner for this endeavour, we are excited to partner with Reneo’s state-of-the art technology and real estate management expertise to meet this challenge, and return to the sector with positive sentiment.”