The UK and EU’s housing and workspace requirements for the next 15 years could be met by redeveloping brownfield sites and repurposing vacant office space, according to a new report from Ginkgo.
Conducted in collaboration with systems change company Systemiq, the ‘Urban Regeneration: Turning obsolescence into value for Society, Nature, Climate – and Investors’ report, found that in Europe there is 19,000 sq km of under-utilised brownfield land and 300 sq km of vacant office space.
Redeveloping only a fraction of this space could deliver 15 million to 20 million homes and mixed-use spaces and would require €4tn of investment over the next 10-15 years.
Laura Nolier, director of strategy and impact at Ginkgo Advisor, a member of the Edmond de Rothschild Private Equity partnership, said: “Urban regeneration represents a significant – and untapped – opportunity for investors with a long-term horizon and a strong focus on urban economies, real estate, and infrastructure to fulfil their fiduciary duty to generate financial value while meeting increasing demands for sustainable or even ‘regenerative’ credentials. Urban regeneration projects deliver on both fronts.”
Francois-Xavier Vucekovic, chief investment officer at Edmond de Rothschild Private Equity, added: “Urban regeneration has long been seen as a public sector ‘play’. But the need for faster regeneration and the emergence of private remediators (for brownfield sites) and developers are opening opportunities for private sector players. At Edmond de Rothschild Private Equity, we view urban regeneration as a strategic pathway to align our long-term investment vision with sustainable value creation and lasting impact.”
