Proptech investor Taronga Ventures is getting close to the $200m target for its first fund. 

Singapore developer CDL committed an undisclosed sum to the RealTech Ventures I Fund this week, following recent commitments from Qantas Super, Dutch pensions group APG and Canadian investor Ivanhoé Cambridge. The fund will invest in proptech companies which are relevant to the Asia Pacific region, with a focus on sustainability-linked ventures. 

The fund, which has attracted investment from a range of blue-chip institutions and real estate investment managers the fund, had an initial target of only $50m but is now understood to be capped at $200m. 

“CDL’s investment in Taronga Ventures allows us to partner the market’s best in class to drive product and process innovation. Their focus on green innovations complements our ESG and sustainable investment initiatives, and supports our decarbonisation efforts,” said Mr Sherman Kwek, CDL’s group chief executive officer.

APG and Ivanhoé Cambridge also announced they would become partners in in Taronga Ventures’ ESG Impact innovation program, which will be implemented across Asia in 2022 and 2023. The program supports the adoption of best-in-class ESG technologies and innovations that drive real and measurable change.

“We are delighted to be partnering with Taronga Ventures for our first proptech investment in Asia Pacific. The partnership will allow us to have direct access to some of the latest innovations in our industry which will bring long-term benefits to our wider real estate portfolio. The fund’s strong focus on ESG related tech also perfectly aligns with our vision to drive longer term sustainability within real estate,” said Graeme Torre, managing director and head of real estate for APG Asset Management Asia Pacific.

Investment manager ESR Group has secured its third sustainability-linked loan, of ¥28 billion ($243 million).

The five-year senior unsecured, committed corporate facility was extended by a consortium of Japanese banks, including Sumitomo Mitsui Banking Corporation and Mizuho Bank. ESR will be entitled to a reduction of the interest rate (initially TIBOR plus 1.8%) as sustainability targets are achieved.  ESR would not reveal the specific targets and potential interest rate reductions.

Jeffrey Perlman, chairman of ESR, said: “ESG sits at the heart of our business, playing a key role in each and every part of our operations. As the largest real asset manager in APAC, we have a strong sense of common purpose and a vision to focus on the well-being and long-term priorities of our broader community and environment.”

The proceeds will be used to fund the group’s refinancing of existing borrowings, working capital requirements and for general corporate purposes. The loan amount can be increased to ¥35 billion. ESR secured its first, $1 billion, sustainability-linked loan in November 2021. 

Previously an Asia Pacific logistics real estate specialist, ESR completed the acquisition of Singapore-based ARA Asset Management in January, creating Asia’s largest real estate investment manager, with $140 billion of assets under management in Asia Pacific, Europe and the US.