Real Estate Finance

We focus on providing long-term, fixed-rate loans secured against good quality investment property benefiting from diversified or secure income streams backed by strong occupational demand.

We have established environmental due diligence processes and, as with our other asset classes, ESG analysis is integral to our assessment of all long-term risks and opportunities.

Before we lend:

• We consider ESG factors in our initial analysis of lending opportunities before we decide to proceed to due diligence. This consists of internal and external expertise to source and screen properties, as well as assessing our prospective borrowers’ ability to manage properties from an ESG perspective. Satisfactory due diligence will always be a condition of proceeding to lend
• As part of our due diligence process, we commission independent environmental surveys, as well as legal reviews. Where they identify issues, we’ll either screen the loan out or, if we think that there may be a way to mitigate the risk, require the borrower to provide a solution
  
  
• Our compulsory building survey includes a report on environmental issues in respect of the physical fabric of the building; assets with flood risk/exposure to climate change are rejected
• We also screen based on minimum EPC ratings. In certain circumstances where the EPC ratings fall below our minimum requirements, the lending may be able to continue if the borrower has a credible plan to improve the rating. We’ll engage with the borrower to understand this strategy

After lending:

• Once we have decided to lend, we will control ESG risks through our loan documentation. This covers environmental issues, bribery, corruption and sanctions and matters such as data protection and modern slavery
• Where we have identified a particular ESG concern as part of our due diligence phase (that has not led to the loan being screened out), we will include bespoke controls in our loan documentation and monitoring. We typically monitor loan compliance through compliance certificates delivered by the borrower and through regular contact with our borrowers

Please note that while Canada Life Asset Management Limited and Canada Life Limited are regulated as per the legal statement below, property management and the provision of commercial mortgages are not regulated activities.