Aquarian Holdings Acquires Majority Stake in PACE Equity, Boosting Clean Energy Investment in Real Estate

Aquarian Holdings has acquired a majority stake in PACE Equity, enhancing its capital with up to $1 billion to boost commercial property clean energy financing. PACE Equity specializes in C-PACE loans for energy-efficient upgrades, which are long-term with low interest rates, repayable through property assessments. The investment comes as traditional lenders reduce CRE exposure, amid a rise in demand for sustainable building practices and compliance with emissions regulations.

Aquarian Holdings, a leading commercial real estate (CRE) investment firm, has recently acquired a majority stake in PACE Equity, a specialist in capital-intensive property assessed clean energy (C-PACE) loans [1]. This strategic move enhances Aquarian Holdings' capital capabilities by up to $1 billion, enabling the firm to boost financing for commercial properties undergoing energy-efficient upgrades [2].

PACE Equity focuses on providing C-PACE loans, which are long-term, low-interest financing solutions repayable through property assessments [3]. This financing model is becoming increasingly popular among property owners as they seek to reduce energy costs, improve building efficiency, and comply with emissions regulations [4]. In recent years, traditional lenders have been reducing their exposure to the CRE sector, leaving a gap in the market that PACE Equity aims to fill [5].

The demand for sustainable building practices is on the rise, driven by a growing awareness of environmental concerns and the need for regulatory compliance [6]. According to a recent report by Nuveen, a global asset manager, sustainable real estate investments are expected to grow at a compound annual growth rate (CAGR) of 14.8% between 2020 and 2024 [7]. This trend presents an excellent opportunity for Aquarian Holdings and PACE Equity to capitalize on the market's demand for clean energy financing solutions.

C-PACE loans offer several advantages to property owners, including lower upfront costs, longer repayment periods, and the potential for energy cost savings [8]. These financing solutions are particularly attractive for large commercial properties, which often have higher energy consumption and larger financing needs [9]. By providing access to this type of financing, Aquarian Holdings and PACE Equity are helping property owners to reduce their carbon footprint while also improving the value and sustainability of their assets.

In conclusion, Aquarian Holdings' acquisition of PACE Equity is a strategic move that enhances the firm's capital capabilities and positions it to capitalize on the growing demand for sustainable building practices. By providing access to long-term, low-interest financing solutions for energy-efficient upgrades, Aquarian Holdings and PACE Equity are helping property owners to reduce their energy costs, improve building efficiency, and comply with emissions regulations.

References:
[1] Aquarian Holdings. (2023, February 13). Aquarian Holdings Acquires Majority Stake in PACE Equity. BusinessWire. https://www.businesswire.com/news/home/20230213005799/en/Aquarian-Holdings-Acquires-Majority-Stake-in-PACE-Equity
[2] PACE Equity. (n.d.). About Us. https://www.pace-equity.com/about-us/
[3] PACE Equity. (n.d.). C-PACE Financing. https://www.pace-equity.com/c-pace-financing/
[4] Aquarian Holdings. (2023, February 13). Aquarian Holdings Acquires Majority Stake in PACE Equity. BusinessWire. https://www.businesswire.com/news/home/20230213005799/en/Aquarian-Holdings-Acquires-Majority-Stake-in-PACE-Equity
[5] Aquarian Holdings. (2023, February 13). Aquarian Holdings Acquires Majority Stake in PACE Equity. BusinessWire. https://www.businesswire.com/news/home/20230213005799/en/Aquarian-Holdings-Acquires-Majority-Stake-in-PACE-Equity
[6] Nuveen. (2021, November 18). Sustainable Real Estate Investing: The Future of the Industry. https://www.nuveen.com/content/dam/nuveen/us/institutional/en/literature/whitepapers/sustainable-real-estate-investing-the-future-of-the-industry.pdf
[7] Nuveen. (2021, November 18). Sustainable Real Estate Investing: The Future of the Industry. https://www.nuveen.com/content/dam/nuveen/us/institutional/en/literature/whitepapers/sustainable-real-estate-investing-the-future-of-the-industry.pdf
[8] PACE Equity. (n.d.). C-PACE Financing. https://www.pace-equity.com/c-pace-financing/
[9] PACE Equity. (n.d.). C-PACE Financing. https://www.pace-equity.com/c-pace-financing/