REALIANCE Sustainability Statement
About us
REALIANCE is initiator and manager of real estate investment funds and offers investments in growth areas in both the Southeastern United States and Central Europe yielding attractive returns. Real estate has the potential to be a stable and value-retaining long-term investment, provided that the properties are carefully selected with an eye toward future demand and quality requirements.
ESG-Vision
On March 10, 2021, the Sustainable Finance Disclosure Regulation (SFDR) came into effect. This European regulation requires financial firms to be transparent about whether or not they operate sustainably. This obligation has led to the development of an ESG vision and strategy, in which REALIANCE outlines how it approaches sustainability.
This sustainability statement provides insight into how REALIANCE addresses sustainability within its real estate investments. This statement consists of the following sections:
- How REALIANCE addresses sustainability risks;
- How REALIANCE’s compensation policy aligns with the integration of sustainability risks;
- How REALIANCE addresses the negative impacts of its investment decisions on sustainability factors.
How REALIANCE addresses sustainability risks – Article 3 SFDR
REALIANCE’s real estate funds do not aim to offer sustainable or “green” investments, nor do they seek to promote environmental and/or social characteristics.
However, sustainability risks are integrated into the current investment policy—and the investment decisions made based on it. A sustainability risk is the risk that an investment will lose value as a result of an event or circumstance related to sustainability.
When discussing sustainability, the acronym ESG is often used. This stands for Environmental, Social, and Governance:
- Environmental (E) refers to ecological factors. Examples include climate change, CO2 emissions, waste management, and water usage.
- Social (S) refers to societal factors. Examples include working conditions, human rights, and access to healthcare.
- Governance (G) refers to corporate governance. This covers issues such as diversity on the board, compensation policies, compliance with laws and regulations, shareholder protection, and the fight against corruption and bribery.
When managing real estate funds, certain types of investments are selected based on the established investment policy and fund objectives. When selecting investments, numerous factors that may influence value development are taken into account. Because sustainability risks can also have a negative impact on development of value, these aspects form an integral part of the process. These risks are based on the aforementioned ESG factors.
The management of sustainability risks is an integral part of REALIANCE’s investment policy. It sets requirements for the selection of investments and, subsequently, for the monitoring of investments; specifically, whether investments continue to comply with the investment policy and the specific requirements and management measures established for each project within the framework of this policy. If necessary, management measures will be tightened.
Environmental
REALIANCE primarily invests in value-add and opportunistic residential real estate.
In project development or renovation, we systematically assess which environmental factors could negatively impact the property’s value appreciation.
When REALIANCE considers investing in residential real estate located in an area with elevated risks (such as extreme precipitation or flood susceptibility), this may be grounds to refrain from the investment or to impose conditions; for example, that (additional) adequate management and mitigation measures are demonstrably in place.
Social
REALIANCE applies a code of conduct for its employees in which integrity, transparency, reliability, equality, and responsibility are paramount when it comes to managing real estate funds. These codes of conduct are documented, evaluated annually, and updated in the internal publication “Working at REALIANCE.”
In project development with local partners, respect for human rights—often focused on working conditions—is a mandatory component of the investment policy.
With regard to the projects in its funds, REALIANCE strives to provide a safe, attractive, and pleasant living environment through its local tenants. In the event of tenants’ payment difficulties, local partners do everything possible to provide support, including applying for rental assistance if necessary. This process is also structurally incorporated into the investment policy.
Governance
REALIANCE strives for transparent and responsible corporate governance and operates in compliance with all relevant laws and regulations.
When entering into new relationships with stakeholders, REALIANCE conducts due diligence reviews in line with the requirements of the Anti-Money Laundering and Counter-Terrorist Financing Act (Wwft). These due diligence requirements also apply to collaborations with local partners.
How REALIANCE’s remuneration policy aligns with the integration of sustainability risks – Article 5 SFDR;
REALIANCE’s remuneration policy is a prudent, controlled, and sustainable remuneration policy that is aligned with REALIANCE’s strategy, objectives, risk appetite, as well as its standards and values.
REALIANCE integrates sustainability risks into its remuneration policy by ensuring that remuneration (fixed and variable) never encourages the taking of excessive risks and is explicitly linked to compliance with investment policy and prudent risk management.
Sustainability risks—including environmental, social, and governance risks—are an integral part of the employee evaluation process and influence both the amount and the awarding of variable compensation.
Variable remuneration may be reduced, suspended, or withheld if risk limits are exceeded or laws and regulations (such as integrity and compliance standards) are not adhered to. This policy encourages employees to act in the long-term interests of investors and stakeholders.
The remuneration policy is reviewed and updated annually to ensure it remains aligned with new insights into sustainability risks, developments in the real estate sector, changes to the SFDR, other laws and regulations, and the expectations of the regulator.
How REALIANCE addresses negative impacts on sustainability – Article 4 SFDR
Sustainability factors include, for example, environmental, social, and employment issues, respect for human rights, and the fight against corruption and bribery. Such factors can, as described above under sustainability risks, influence the value of investments. Conversely, investment decisions can also have a negative impact on sustainability factors; for example, an investment in fossil fuels typically causes more negative impact (environmental damage) than an investment in green energy.
The management of REALIANCE believes that, given the investment policies of the investment funds it manages, it is not meaningful to measure the principal adverse impacts (PAIs) of investment decisions on sustainability factors.
If REALIANCE were to choose in the future to take these Principal Adverse Impacts into account, this would require REALIANCE to prepare a detailed PAI statement in accordance with the format and data points prescribed by the SFDR.
Since none of the investment funds managed by REALIANCE promote ESG characteristics or have sustainable investments as their objective, and REALIANCE does not pursue this ambition at the entity level either, REALIANCE does not currently consider it appropriate to prepare such a statement.
March 2026
