Corporate Responsibility and Sustainable Facilities Management

8/8/2019 Corporate Responsibility and Sustainable Facilities Management

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Property CR AMP CapitalTopics Covered

Corporate Responsibility Framework AMPCI Property

Managing Environmental Performance in Assets

Case Study AMP Centre Case Study


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For more than 150 years, AMP has invested in the future forgenerations of Australians today, 1 in 6 are customers.

As a part of the AMP Group, AMP Capital Investors is committed

to building a sustainable future. The combination of our scale,breadth and capability provides us with the opportunity toinfluence the future and continue to make a difference.

By doing this well as a leading property investment manager, wecreate value for the stakeholders in our community, ourmarketplace, our workplace and our environment.

AMPGroup

Corporate ResponsibilityWhy AMP Capital Investors Positioning Statement

AMPCa

pital

Property


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Corporate ResponsibilityWhy Property Future Proofing Property Value

Meeting Market Demands (Tenant Survey)

- Reduced Vacancy & Incentive

- Tenant Retention

Reduced Outgoings = Higher Chargeable Rents

- Energy, Waste and Water costs all on the rise

- Carbon Tax

Capital Value and Asset Liquidity- Underlying Valuation

- Cost to Green (Progressive Operation or Step Capital)


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How important are environmental considerations for your businesswhen selecting space to occupy?

Corporate ResponsibilityWhy Property Meeting Market Demands


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Corporate ResponsibilityWhy Legislative Compliance

Energy Efficiency Opportunities Act 2006

National Greenhouse & Energy Reporting Act 2007

Mandatory Disclosure


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Responsibility to the general community and particularly the communities inwhich we operate

Our relationship with our investors, our tenants, our suppliers andprofessional/representative bodies and organisations

Responsibility to our own Property Team

Responsibility for our impact on the local, national and global environment

Our

community

Our

community

Our

marketplace

Our

marketplace

Our

workplace

Our

workplace

Our

environment

Our

environment

CR at AMP Capital PropertyProperty Pathways


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How we manage Environmental PerformanceIntegration to Investment Management Model (IMM)

MONITOR(30min Cause-Effect data)

REPORT(Accurate & Meaningful)

ACTION(Set Strategy & Plan)

MONITOR(30min Cause-Effect data)

REPORT(Accurate & Meaningful)

ACTION(Set Strategy & Plan)

IMMSimulation

Maximise

ROI


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Accountability through IntegrationInvestment Management Model

BUSINESSPLAN

DEVELOPMENTPLAN

INVESTMENT MANAGEMENT

10 YEARCAPEXPLAN

ENVIRON-MENTAL

STRATEGIES

ASSETSTRATEGIES

BUSINESSAWARENESS

TENANCYSURVEYS

ASSETPLAN

Q1 Q2 Q3

3YR

FLEXIBLE

10YR INVESTMENT HORIZON

51 432 106 98

AM

PM

PM

AMNOG

PM

NOGAM

AMAN

PM

PM

AMFIN

PM

AMFIN

PM

AMFIN

PM

AMFIN

DM

AM

7

AM Asset ManagerAN AnalystPM Property ManagerNOG National Operations GroupFIN FinanceDM Development Manager


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Managing Environmental PerformanceAction - Environmental Strategy

Environmental Strategy Plans (ESP) aredeveloped for all properties, that:

identify the environmental potential of aproperty

set targets for Energy, Waste and Waterperformance against current status

identify key initiatives to assist in achievingthese targets

Accredited assessors approve all plans

Engineered initiatives are costed for inclusionin business plans, with programmedinstallation aligned with a properties leasingprofile.

Plan layout


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Managing Environmental PerformanceAction, Monitor & Report

Sophisticated monitoring tools

Initiatives may be immediately monitored on-line to optimise practices and enhancemodelling process eg. TCA Webgraphs allow Facilities Managers to view dailyEnergy and Water usages in a property without having to wait for authority bills

Alarms are set to monitor excessive use, leaks, operational logic etc.

Energy Profile Before Energy Profile After


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Performance data must be verified for use by authorities such as Department

Environment and Climate Change or for grant applications.

Energetics compile our consumption of Electricity, Gas, Waste and Water.This data can be reviewed on-line in various reports such as the BuildingPerformance Reports.

Energetics assess our performance using the NABERS rating tools.

For Benchmarking, data for all properties is uniformly reported.


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FUND LEVEL REPORTING

INDIVIDUALS ACCOUNTABILITY



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Example Greening Project Repositioning Asset222 Exhibition Street, Melbourne

Purchased with approaching lease expiry

Standard Life Cycle Analysis to develop a10yr Capital Plan

Approached Tenant with Master Plan toinvest in NABERS upgrade

Modelled Investment vs Total Returnconsidering alternate Ratings vs Rent andOperating Expenses and Asset Valuation.

Negotiated Optimum with the Tenant andagreed a new lease term with a strictKPI/Penalty focused Green Lease


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Example Project Asset Repositioning222 Exhibition Street, Melbourne

Reference System Option PredictedElec

kWh/annum usage

PredictedGas

kWh/annum usage

kWh/annum saving

(comparedto current)

CarbonDioxideSaving

(kg)/Annum

Cost $/kgCO2/Annumsaving

Percentagecontributedto achieving

a 4 starABGR

N2

Meter chilled water

loop to CHW loop

N3 and N4

Internal andperimeter zoneupgrade

N27Refurbish existingoffice lighting

N29 Office light zoning

N30ABGR Electricalmetering

N11 Mods to AHU's

N12

Sub-meteringmechanicalconsumption

N14 New BMS 702,672 305,328 409,140 $6,092,700 14.89 31%

N5

Chillerupgrade/VSDpumps

N10 and partN9

Upgrade CoolingTowers 364,465 307,535 412,097 $1,725,000 4.19 32%

N13Sub-meteringstandby generator n/a 5,000 $15,000 3.00 0%

N15Carpark ventilation(calculations) 186,359 31,146 41,736 $100,000 2.40 3%

N20 and N21Hot waterstorage/Solar HWS n/a 31,980 54,449 11,434 $30,000 2.62 1%

N23 and N24Upgrade CarparkLights 61,722 99,077 132,763 $120,000 0.90 10%

N25Upgrade Toiletlights 14,967 30,091 40,322 $60,000 1.49 3%

N26Office lift lobbylights 59,826 165,903 222,311 $99,000 0.45 17%

Sub Total: 1,390,011 31,980 993,529 1,274,802 $8,241,700 98%

Option 1

Purchase Accredited Green Power for shortfallplus 20% (annual expense over and above normalelectricity rates, estimated as $45/MWh) 508,369 681,215 $22,877 0.03

Option 2

Install fourth chillerwith a highefficiency chiller. 335,492 28,973 38,824 $350,000 9.02 2%

Total: 1,725,503 31,980 1,530,872 1,994,841 $8,614,577 100%


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Case Study

AMP Centre, 50 Bridge Street, Sydney

March 2010


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Case Study

AMP Centre, 50 Bridge Street, Sydney

Introduction

2001 Context

Scope

Environmental Performance

Lessons Learnt


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AMP Centre, 50 Bridge Street

Completed 1973

Net letable area 54,500sqm 42 office floors

1,200sqm floor plates

1,600 retail plaza

230 parking spaces


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2001 Context

Lease Expiries 2001 - 7%, 2002 - 13%, 2003 - 18%, balance of building by end 2006

HIH occupy 11,500sqm Provisional liquidation - 15 March 2001

Key competitors Compatriot buildings - Australia Square, MLC Centre, 20 Bond Street, Met Centre Premium buildings - Governor Phillip Tower, Chiefly Tower, Aurora Place

Services performance challenges Air-conditioning and lifts

Emerging sustainability tools

Project positioning Consolidate A grade credentials, offer a value proposition with premium views


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AMP Centre Refurbishment

Project Budget - $77 million

Major scope areas

air conditioning - 20% increase in capacity

lifts modernisation - 30% reduction in average waiting times

office lighting - 50% reduction in energy costs

main switchboard replacement dedicated tenant communication riser

new fire control room

foyer, lift car and office floor finishes

introduction of a foyer caf

$12 retail plaza upgrade - 6 new food outlets


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Performance Measures

Leasing - every tranch substantially pre committed

Operational Outcomes

Services performance

Energy consumption

tenant lighting - 50% down

base building energy - 43% down

Market indicators and competitor performance


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43% reduction in electricity usage from 2002 2009

2000 Y2K + GST Implementation focusedEnvironmental and Sustainability only just on their radar

2009 @ 3.0 Stars2010 @ 3.5 Stars (expected)

Investment Management Model

Investment performance

Lifecycle 10 year Capital Expenditure program Lease expiry profile

Market forecast

Competitor set forecast vacancy/supply

Lifecycle analysis


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Waste

Water

Energy


How?

New Air conditioning system from constant volume to variable air volume

New Carrier Chiller

New BMCS CO2 monitoring / car park exhaust

T8 Lighting

Car park sensor lighting

BMCS Upgrades

Night purge system Chiller strategy

Added plant not previously monitored and control led

Replacement of all HVAC Pumps most fans

Waterless urinals / recycling

- 2.5 star Nabers rating Saved 10.5 million litres per annum from 2006

Co-mingled waste Recycling Average of 70% per annum of waste recycled over the last 3 years

Retail Plaza food recycling 2008

OzHarvest program introduced 2008


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Where to Next

NABERS 4 Star rating is possible

Replace all chillers except row chiller Energy management system to BMCs

Retail Plaza reparation / Energy HVAC management


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Lessons

Maximise holding income

Tight coordination Sustainability

Identify opportunities

Constantly review and have

flexibility to move with technology IMM

Involve site team from projectstart


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Corporate Responsibility AMPCI Property

Its more than what we sayits what we do.


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Important note

Neither AMP Capital Investors Limited (ABN 59 001 777 591) (AFSL 232497), nor anyother company in the AMP Group guarantees the repayment of capital or the performanceof any product or any particular rate of return referred to in this presentation.

Past performance is not a reliable indicator of future performance.

While every care has been taken in the preparation of this document, AMP CapitalInvestors makes no representation or warranty as to the accuracy or completeness of anystatement in it including, without limitation, any forecasts.

This document has been prepared for the purpose of providing general information,without taking account of any particular investors objectives, financial situation or needs.An investor should, before making any investment decisions, consider the appropriatenessof the information in this document, and seek professional advice, having regard to theinvestors objectives, financial situation and needs.

This document is solely for the use of the party to whom it is provided.

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Corporate Responsibility and Sustainable Facilities Management

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