01:06 PM EDT, 09/16/2024 (MT Newswires) -- Carlyle Group ( CG ) announced "a strategic investment" in North Bridge ESG, along with a commitment to provide up to $1 billion in clean energy loans to be issued by the real estate financing company.

North Bridge provides commercial property assessed clean energy, or C-PACE, loans to institutional borrowers. C-PACE is fixed-rate financing that can be used for new construction projects, renovations and acquisitions, as well as for recapitalization on a retroactive basis.

C-PACE is being increasingly sought out due to its "accretive benefits to commercial real estate capital stacks," the companies wrote in a joint statement on Monday.

With banks pulling back from commercial real estate lending due to "concentration risk in the sector," the investment allows Carlyle to meet industry financing demands, said Rachel King, a principal focused on opportunistic real estate credit at Carlyle.

Carlyle's $1 billion commitment enables North Bridge to "lead the transformation of the industry," said North Bridge Chief Executive Laura Rapaport.

On Wednesday, official data are expected to show August housing starts of 1.31 million and building permits of 1.41 million. In July, housing starts fell 6.8% sequentially while permits, a forward-looking indicator of homebuilding, slid 4%.

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