This statement is published in accordance with Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector ("SFDR"). It explains how ARD Capital Partners ("ARD Capital Partners", "we", "us" or "our") approaches sustainability risks in its investment decision-making process. Last updated: 9 October 2026.
ARD Capital Partners does not currently promote environmental or social characteristics, and does not pursue sustainable investment as a specific objective, within the meaning of Articles 8 or 9 SFDR. ARD Capital Partners does not currently consider the principal adverse impacts of its investment decisions on sustainability factors under Article 4 SFDR. This position may change over time as our approach to sustainability reporting develops; any change will be reflected in an updated version of this statement.
The Sustainability Finance Disclosure Regulation (Regulation (EU) 2019/2088, "SFDR") is an EU regulation that requires certain financial market participants and financial advisers to disclose how they integrate sustainability risks into their investment decisions and advice. It is intended to improve transparency in the market for sustainable investment products and to help prevent misleading sustainability claims (sometimes referred to as "greenwashing"). The sections below set out how ARD Capital Partners currently approaches its obligations under SFDR.
A sustainability risk is an environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment. ARD Capital Partners considers relevant sustainability risks, where material and where information is reasonably available, as part of its general investment due diligence process for real estate assets, alongside other financial and operational risk factors. For example, for developments such as São Paulo Residential Fund 3, ARD Capital Partners takes into account physical climate-related risks affecting the underlying project in São Paulo (such as extreme weather, flooding and heat-related construction risk), and considers relevant ESG findings arising from due diligence on development partners such as Vitacon, alongside the project's financial and legal due diligence.
ARD Capital Partners currently has fewer than 500 employees. Under Article 4(3) of Regulation (EU) 2019/2088 ("SFDR"), it is therefore not required to consider the principal adverse impacts of its investment decisions on sustainability factors, and has elected not to do so at this time. This is principally because, given our size and the current unavailability of reliable, standardised data on principal adverse impacts across our investments, the cost and complexity of collecting and reporting such data would be disproportionate to our scale. We will keep this position under review as our assets under management, data availability and market practice develop, and will update this statement to confirm if and when we decide to consider principal adverse impacts.
ARD Capital Partners' remuneration practices are designed to be consistent with, and not to undermine, the integration of sustainability risks described above. Remuneration is not structured in a way that encourages excessive risk-taking with respect to sustainability risks, and variable remuneration for relevant staff depends in part on sound and effective risk management, including the consideration of sustainability risks where material.
Unless otherwise specified for a particular fund or investment product, our investment products do not promote environmental or social characteristics within the meaning of Article 8 SFDR, nor do they have sustainable investment as their objective within the meaning of Article 9 SFDR. Our current real estate funds, including the São Paulo Residential Fund series, are accordingly classified as "Article 6" financial products under SFDR; the related product-level disclosures are included in each fund's information memorandum rather than on this page. Where a specific product's documentation states otherwise, that product-specific documentation shall prevail.
We will review and, where necessary, update this statement periodically to reflect changes in our approach, regulatory guidance or applicable law.