Nuveen to acquire clean energy financing leader Greenworks Lending

From

Jose Minaya

Nuveen, a leading global investment manager, has agreed to acquire Greenworks Lending, a national leader in Commercial Property Assessed Clean Energy (C-PACE) financing. The acquisition gives Nuveen a foothold in the clean energy and energy efficiency lending market and will provide its clients access to an innovative and attractive clean energy investment.

“Greenworks is a pioneer in developing and scaling C-PACE as a cost-efficient marketplace solution for property owners and municipalities to pursue energy efficiency solutions for their commercial buildings,” says Jose Minaya, CEO of Nuveen. “The company is a triple-win demonstration of doing well by doing right: Investors get access to attractive yields, borrowers get a net reduction in operating costs through the utility savings, and the environment benefits too.”

Founded and led by Jessica Bailey and Alexandra Cooley, Greenworks’ mission is to reduce the global carbon footprint through compelling investment solutions in commercial and industrial properties, which are the largest real estate users of carbon in the United States. With C-PACE loans, commercial property owners are able to obtain attractive, long-term financing for energy efficiency, water conservation, renewable energy and climate resiliency projects.

The mission of Greenworks is aligned with one of the key tenets of Nuveen’s responsible investing platform: reducing the carbon footprint of commercial real estate. The economic impact is also impressive, as the property improvements are offset by energy cost savings, resulting in a cost-effective means to finance green new construction and property retrofits.

“We founded Greenworks with a mission to combat climate change by scaling clean energy in commercial buildings around the country. C-PACE brings benefits to local businesses, energy security, and the environment,” says Jessica Bailey, CEO of Greenworks . “In Nuveen, we found the ideal firm with a shared philosophy that can expand C-PACE to more property owners, through its diversified investment expertise in private credit, real estate and municipal finance, global reach and 50-year heritage of responsible investing.”

The transaction is expected to close during the first half of 2021, subject to regulatory approval.

This acquisition will complement Nuveen’s existing commercial real estate lending platform, which manages almost $38.4 billion globally. Investing across the capital structure, the strategy seeks income-focused, stable and attractive, risk-adjusted total returns for investors through a diversified portfolio of investments.

Energy reduction has been the bedrock of Nuveen’s approach to sustainable real estate investment and management for well over a decade. Integrating ESG throughout the real estate investment management process to help preserve and create value for our clients in tomorrow’s world.

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