ImpactAlpha, July 13 — Construction of buildings was responsible for 38% of global greenhouse gas emissions in 2020.
Real estate developers in Europe are increasingly building properties made of wood, massive timber and other renewable materials, rather than steel and concrete, to reduce their carbon footprint.
Australia-based Cromwell Property Group is teaming with Finland-based Dasos Capital in an open-ended fund to invest in wood building projects in Europe, which are expected to grow at an annual rate of 8%.
Cromwell and Dasos are looking to raise €100 million ($118 million) by the end of the year and ultimately build a €1 billion portfolio.
France may require new public buildings to be constructed with 50% wood or other sustainable materials as early as next year. Nordic countries have been even more aggressive.
Cromwell is a global real estate investor; Dasos advises pension funds and family offices on real assets investments in timber, land and natural capital.