Boston, MA-based Taurus Investment Holdings and Aegon Asset Management have entered into four-year, $600 million, ESG-centric venture to acquire value-add multifamily assets and considerably reduce the energy consumption and carbon output of those assets.

The venture’s initial project will be Canopy Villa Apartments, a 1981 vintage, 296-unit multifamily in Orlando, FL.

The parties to the venture will manage the investments, while the Taurus’ subsidiary RENU Communities will evaluate and apply its tailored retrofit program to transition the assets to low-carbon, energy-efficient buildings. According to the companies, RENU will work to link traditional real estate investment with the market’s growing desire for electrification and decarbonization.

“The strong return potential and durable cash flows of the multifamily value-add strategy paired with this accretive, one-of-a-kind decarbonization initiative aims to set the standard for a new way to approach these investments,” said Alexia Gottschalch of Aegon Asset Management.

Evercore Real Estate Capital acted as financial advisor to Taurus in the transaction.