Starwood Energy and energyRe Announce Launch of Radial Power

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Sep 21, 2022, 08:35 ET

Radial Power is a joint venture comprised of investment affiliates of energyRe and Starwood Energy, the large-scale energy affiliates of the Related Companies and of Starwood Capital Group respectively

HOUSTON and NEW YORK, Sept. 21, 2022 /PRNewswire/ -- Starwood Energy Group Global, LLC ("Starwood Energy"), and energyRe LLC ("energyRe"), today announced the launch of Radial Power, LLC ("Radial Power"). Radial Power will seek to deliver best-in-class portfolio-wide distributed clean energy solutions to large real estate and C&I asset owners, while unlocking revenues from underutilized real estate, delivering cost savings, and helping to facilitate North America's energy transition.

Radial Power is a joint venture comprising investment affiliates of energyRe and Starwood Energy, respectively, the large-scale energy affiliates of the Related Companies ("Related" and Starwood Capital Group ("Starwood Capital") —two of the most innovative real estate investment companies in the United States. Investment affiliates of energyRe and Starwood Energy will be the direct investors in Radial Power. Starwood Capital and the Related Companies, which combined have approximately 2,000 assets across all real estate asset classes in more than 45 states valued in excess of $175 billion, anticipate becoming Radial Power's foundational customers for Radial Power's asset and regional specific solutions.

Related and Starwood Capital rank among the largest owners, developers and preservationists of affordable and workforce housing in the country. Related Companies own more than 55,000 affordable residences in cities across America, and Starwood Capital's portfolio surpasses 47,000 units. Radial Power will seek to bring clean energy solutions and programming to residences within these extensive affordable housing portfolios and to enhance community health, resiliency and sustainability.

"We are delighted to announce the launch of Radial Power, in partnership with the management team and energyRe," said Barry Sternlicht, Chairman of both Starwood Energy and of Starwood Capital Group. "Radial Power's mission complements Starwood Capital's energy transition efforts, affirms our commitment to best-in-class environmental, social and governance performance across our funds and assets, and supports Starwood Capital's pledge to continue to deliver value for our investors for decades to come."

"As the United States sets an ambitious pace for the nation's energy goals, Radial Power's mission to advance innovative, state-of-the-art clean energy solutions is more urgent than ever," said Jeff Blau, Chairman and Founding Partner of energyRe and CEO of the Related Companies. "We are proud to partner with Starwood Energy to build a platform like Radial Power that will deliver on our shared long-term dedication to sustainability and a reliable energy transition across our assets."

"We are delighted to launch Radial Power and to offer a unique platform to the marketplace," said Himanshu Saxena, CEO of Starwood Energy. "Radial Power's world-class team will work with Starwood Capital, Related Companies and other real estate owners to offer decarbonization solutions, including solar, EV charging, distributed storage and combined heat and power solutions. In a world increasingly focused on sustainability, Radial Power will offer tailored solutions to help meet the ESG objectives of numerous customers."

"energyRe is committed to a renewable, reliable, and responsible energy transition—and that is exactly what Radial Power will bring to market," said Miguel Prado, CEO of energyRe. "As portfolio owners seek to reduce their environmental footprints, Radial Power's comprehensive clean energy solutions and programming will be critical to meeting those timely ESG and sustainability objectives. The Inflation Reduction Act is a paradigm shift in our country's approach to the energy transition—and energyRe is ready to build on that momentum and bring our decades of expertise and industry leadership to the fight for a more resilient future."

Radial Power will assist owners of large real estate portfolios in developing programs across multiple state and utility regulatory jurisdictions to achieve their ESG, climate, and renewable energy objectives. Radial Power seeks to provide its partners and customers with both asset and portfolio-level, turn-key integrated C&I solutions, including developing, owning, and operating photovoltaic solar, battery energy storage solutions ("BESS"), and electric vehicle ("EV") charging solutions across utility service territories in the continental United States. Radial Power's goals include leveraging its codified set of proprietary tools and processes to design and deliver a fully financed deployment plan for portfolios with 1,000+ assets of various classes within 45 days from initial contact.

Radial Power's ongoing ownership of its solar, BESS, and EV charging assets will support the company's delivery of superior customer service, including hassle-free construction, operations and maintenance, and regular portfolio reviews to unlock additional value-added solutions as technology costs decline, and regulatory incentives make new distributed energy solutions ever more viable over time.

"The increasing cost competitiveness of clean energy technologies, maturing regulatory frameworks, and local, state, and federal incentives serve as tailwinds for adoptions of clean energy solutions," said John Bates, CEO of Radial Power. "Radial Power seeks to access this enormous market opportunity and to deliver significant economic and environmental value to stakeholders across the board."

Radial Power is led by an experienced management team with 60 years of cumulative and relevant industry experience for developing and building sustainable and profitable solar, BESS, EV, and clean energy financing assets and businesses.

About Radial Power

Radial Power is a privately-owned, developer-owner-operator of distributed clean energy assets across large real estate portfolios, based in Houston Texas. Radial Power is a jointly owned by investment affiliates of energyRe and of Starwood Energy. For more information, visit www.radialpower.com

About energyRe

energyRe, LLC is a leading independent clean energy company with offices in New York and Houston, focused on solving complex challenges and providing clean energy solutions. The executive management team has developed and built more than 8,800 MW of wind, solar and storage facilities in the United States, Canada, and Mexico. energyRe's founding investors include principals of Related Companies, one of the nation's most prominent privately-owned real estate firms and one of the country's largest creators and preservationists of affordable housing. energyRe is guided by the values of community engagement, government partnership, and a demonstrated commitment to sustainability. For more information about energyRe, visit www.energyre.com

About Related Companies

Related Companies is a global real estate and lifestyle company defined by innovation and one of the most prominent privately-owned real estate firms in the United States. Formed 50 years ago, Related is one of the largest private owners and preservationists of affordable housing in the U.S. and a fully integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisition, management, finance, marketing, and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, West Palm Beach, Miami, Washington, D.C., Abu Dhabi and London, and boasts a team of approximately 4,000 professionals. With over $60 billion in assets owned or under development, including the 28-acre Hudson Yards neighborhood on Manhattan's West Side, The Square in Downtown West Palm Beach, The Grand LA and Related Santa Clara in California and The 78 in Chicago, Related was named to Fast Company Magazine's list of the 50 Most Innovative Companies in the World. For more information about Related, please visit www.related.com.

About Starwood Energy Group

Starwood Energy is a private equity investment firm based in Greenwich, Conn., that specializes in energy infrastructure investments. Through its existing general opportunity funds and affiliated investment vehicles, Starwood Energy has raised in excess of $3 billion of equity capital and has executed transactions totaling more than $8 billion in enterprise value. For more information, please visit www.starwoodenergygroup.com

About Starwood Capital Group

Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,500 employees. Since its inception in 1991, Starwood Capital Group has raised over $70 billion of capital, and currently has over $120 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $91 billion of capital since inception and manages a portfolio of $27 billion across debt and equity investments. Over the past 30 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.

SOURCE energyRe