NEXT Generation Values:
Sustainable solutions for real estate portfolio holders
NEXT Values specialises in supporting institutional investors in making real estate portfolios more sustainable and future-proof. Our approach combines strategic foresight, flexible solutions, and deep market expertise to navigate an increasingly complex investment landscape. As an experienced investment manager, we take full ownership—structuring and managing tailored investment solutions in the form of German or Luxembourg-based special AIFs, always aligned with the specific needs of our clients.
Unlike traditional advisors, we act as an active partner, taking responsibility for execution and long-term value creation.
Key Challenges
Real estate portfolio owners are faced with a variety of complex requirements that we address with targeted solutions:
Transition Risks
As the economy shifts toward a more sustainable, low-carbon model, transition risks present significant financial challenges for real estate investors:
- Stranded Asset Risk: The asset may lose market value due to new environmental regulations or market shifts.
- Regulatory Changes: Evolving legislation requires ongoing adaptation and investment.
- Technological Innovations: The adoption of new, sustainable technologies may render existing systems obsolete and uneconomical.
ESG-Regulations
The regulatory landscape for sustainable finance is continuously evolving, increasing reporting and compliance requirements:
- The SFDR (EU Sustainable Finance Disclosure Regulation) and EU Taxonomy have introduced key frameworks to prevent greenwashing.
- Additional regulations, such as the CSRD (Corporate Sustainability Reporting Directive) and CSDDD (Corporate Sustainability Due Diligence Directive), impose further reporting obligations on companies.
Sustainability ambitions
Beyond regulatory requirements and risk management, many investors set their own ambitious sustainability targets:
- ESG and impact frameworks (e.g., IRIS+ or the 5 Dimensions of Impact) provide guidance for achieving and documenting sustainability goals.
- Beyond regulatory taxonomy alignment, green building certifications such as DGNB or GRESB are increasingly becoming the voluntary standard.
ESG-Benchmarks
Benchmarks link ESG regulations with transition risk mitigation:
- CRREM (Carbon Risk Real Estate Monitor): Helps investors anticipate "stranding" timelines for assets and assess their impact on market value. CRREM benchmarks energy consumption and CO₂ emissions to determine whether properties align with the Paris Climate Agreement.
A practice example
Challenges:
Aligning sustainability objectives with long-term asset value stability
Meeting increasing regulatory and internal reporting requirements
Implementing a robust project risk management framework
Addressing limited internal resources
Our Solution:
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Structuring a Tailored Investment Vehicle
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ESG Integration & Value Protection
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Comprehensive Risk Management
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Automated Regulatory & Investor Reporting
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Operational Efficiency & Cost Optimization
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NEXT as Your Extended Investment Platform
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We provide institutional investors with full portfolio oversight while delivering specialized expertise across all key operational areas:
Dedicated Project Support
- Operational project management
- Technical due diligence and oversight
- ESG and sustainability expertise
- Legal structuring and compliance
- Accounting and financial structuring
- Leasing and tenant management
- Debt financing advisory
Extensive regulatory and internal reporting requirements
- Portfoliomanagement
- Assetmanagement
- Accounting
- Investor relations and regulatory landscape
Our solution: Holistic, adaptive, future-oriented
We tackle these challenges with a holistic approach that focuses on sustainability and innovation. Our aim is to develop tailored strategies that not only meet current regulatory requirements but also establish long-term competitive advantages.
We address investor-specific challenges, such as optimizing public sector tendering processes and enhancing operational efficiency.
Additionally, we focus on two key aspects:
- Enhancing financial performance through the use of alternative financing sources.
- Leveraging regulatory frameworks to overcome obstacles with innovative approaches.
With NEXT Values, we establish a solid foundation for making real estate investments both successful and future-proof.