Gibraltar, 16th June 2023, ZEX PR WIRE, Red Ribbon Fund Management (RRFM) Announces the Launch of Its Latest Gibraltar – Regulated, Experienced Investor Fund (EIF) in Partnership With UK-based Fund Asset Manager Phoenix Asset Management
RED RIBBON PHOENIX GREEN HOTEL FUND LIMITED (GHF)
The Red Ribbon Phoenix Green Hotel Fund (GHF) strategy will target development sites/new build hotels, the refurbishment/repositioning of existing hotels and/or the conversion of existing buildings such as offices into hotels that can be repositioned as certifiably carbon neutral in prime locations across the UK and in London
The GHF has a fundraising objective of c. £300m equity and a minimum internal target IRR of 15% with an IRR hurdle rate of 8%
The closed-end fund has a term of 7+1+1 years
The GHF will target hotel development sites/new build hotels,the refurbishment/repositioning of existing hotels and/or the conversion of existing buildings such as offices into hotels across prime locations in London and the UK. As such the GHF strategy represents a unique offering to investors.
The GHF is a Gibraltar-based EIF, regulated by the Gibraltar Financial Services Commission (GFSC). From Q2 2023, the GHF is aiming to raise c. £300 million equity.
The GHF’s approach is to deliver the most sustainable and environmentally enhanced developments and refurbishments, to achieve active reduction in CO₂ to reduce our carbon footprint during both the development and operational phases – whole life carbon ‘WLC’, ultimately aiming for net-zero outcomes.
Why a green hotel fund
Hotels are the most energy consuming real estate asset class after data centres. We have created a framework of specific policies, standards and regulations to govern the hotel industry for future generations where none currently exist.
The GHF will be taking ESG considerations at every stage of the property lifecycle; from due diligence, acquisition, development, leasing all the way through to asset management.
We have developed a framework of proprietary enabling technologies, including an AI tech-driven platform to both monitor and reduce the embodied carbon emissions both during the development phase (construction processes and materials used) and the operational phase (energy used to cool, heat and light a building).
We have developed a Green Hotel Charter which provides the KPIs to be agreed between the GHF and international hotel brands/ operators to ensure all our hotels are run responsibly and transparently.
We have the option to use other available tools such as The Carbon Risk Real Estate Monitor’s ‘CRREM’ risk assessment tool to ensure our assets have no risk of becoming ‘stranded’ assets/early economic obsolescence for the life of the GHF and beyond with regards energy efficiency; and benchmark against GRESB’s framework to measure the ESG performance of our individual assets.
Given environmental legislation and performance criteria are constantly evolving, in some cases quarterly, we will be reviewing the latest legislation both in the UK and in Europe to ensure that we are always up to date and adopt ‘best practice’ on each project/ asset at the point of delivery.
The GHF will achieve the highest ESG standards with accreditation from The International Capital Market Association ‘ICMA’, The Financial Reporting Council ‘FRC’, The Financial Conduct Authority ‘FCA’ etc. and will be audited by independent third-party green assessors.
Note: Red Ribbon Fund Management Ltd is a Gibraltar-based AIFM authorised by the Gibraltar Financial Services Commission. Red Ribbon Fund Management is part of the financial services group parented by London-based Red Ribbon Asset Management Plc, which is a Mainstream Impact Investment company, diversified across three platforms: Real Estate, Fintech and Funds. More information on RRFM and the Red Ribbon Phoenix Green Hotel Fund is available on the links to the Company and Fund websites below or get in touch via our enquires email address.
Commenting on the GHF’s unique offering, Phoenix’s CEO Anish Aggarwal explains, “With hotels second only to data centres with regards to energy consumption, we aim to create a benchmark for the hotel industry for future generations where none currently exists while offering fund investors attractive returns and an investment that meets the highest commitments to sustainability”.
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