EVORA EDGE’s Key Fund & Asset Management Objectives
Attract investors who are keen on
social/environmental investment
Future-proof assets
Attract and retain occupiers with strong
covenant strengths
Ensure that climate change adaption is
understood and managed
Deliver assets that are productive,
profitable, and resilient to change
EVORA EDGE understands commercial real estate. It’s in our DNA.
Our key objectives are simply to support fund and asset managers to:
Green premium or brown discount
Rental value divergence between energy efficient and non-energy efficient offices – The Netherlands
80
85
90
95
100
105
110
115
2006 2007 2008 2009 2010
Green Index Non-green index
Source: The Value of Energy Labels in the European Office MarketNils Kok & Maarten Jennen – May 2011
NB Slides developed by Deloitte LLP
‘Re-phrasing’ the evidence
Rental value divergence between energy efficient and non-energy efficient offices – The Netherlands
Source: The Value of Energy Labels in the European Office MarketNils Kok & Maarten Jennen – May 2011
80
85
90
95
100
105
110
115
2006 2007 2008 2009 2010
Green Index Non-green index
JLL Prime European Rental Index IPD Netherlands Annual Property Index (Office)
Correlation between Energy
Efficiency and Rental Indices
“Generally” Positive
“Generally” Negative
NB Slides developed by Deloitte LLP
Drivers for Green Buildings (EVORA’s experience)
Minimum Energy Efficiency Standards
GRESB
CSR / Policy etc.
Investor sentiment
BREEAM (through CSR and/or Building Regulations)
Impact of all the above on value including:
– Transactional value
– Yield gap
– Rental income (rent reviews, lease renewals etc.)
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MEES and commercial property
NEGOTIATING TACTICS
Dilapidations
New Letting
Fitting Out
Management
Periodic
Reviews
Existing Letting
EVORA has FIRST HAND
experience of price
reductions at sale as a
result of EPC ratings
EVORA is aware of
significant sums being
negotiated (down) through
dilapidations claims
EVORA is required to factor
EPC ratings into
performance specifications
by major funds
EVORA has engaged with
arbitrators on the likely
effect of MEES on rent
reviews and lease renewals
All requires a basic
energy model
The better the model the
better the more effective
the asset management
strategy
In summary: in the UK, particularly in England / Wales, it is already virtually impossible for an asset manager to (effectively) manage corporate real estate with a basic energy model (an EPC). This can be used as the starting point for developing a BIM
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What is IMPACT?
It is a specification and database for software developers to
incorporate into their tools to enable consistent Life Cycle
Assessment, but also Life Cycle Costing
IMPACT works by allowing the user to attribute
environmental and cost information to drawn or scheduled
items in a Building Information Model (BIM)
Put simply, IMPACT takes quantity information from the BIM
and multiplies this by environmental impact and/or cost
‘rates’ to produce an overall impact and cost for the whole
(or a selected part) of the design
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The Orchard Centre, Didcot, Oxfordshire
EVORA EDGE: Where have we carried out LCA?
Azerbaijan
Moscow
London
Oxfordshire
Gateway Building, Baku White City, Azerbaijan
Working with Encon, JLL, Aecom, Hammerson
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:
Hammerson LCA Project
Why did Hammerson undertake an LCA?
Hammerson wants to make significant reductions across
all areas of its carbon footprint and the least well
understood is the embodied carbon of its development
activities.
“Using IMPACT allows us to quickly and consistently assess
the embodied carbon of a project at an early stage to raise
design team awareness and to subsequently inform design
decision making. We potentially see IMPACT being an
integral part of the design process and rolled out across
future projects”.
Richard Quartermaine, Environmental Manager for
Hammerson - CIBSE Journal February 2017
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Hammerson LCA Project
Hammerson had previously undertaken an LCA on a
shopping centre in France
To do this it appointed a niche consultancy, the report took a
long time and it cost a lot of money
It identified a significant environmental impact when
compared to operational carbon
Hammerson decided to look for quicker and more cost-
effective methods to undertake LCA
Is interested in the use of BIM
Decided to trial IMPACT to ‘piggy back’ off other members
of the design team and to gain additional BREEAM credits
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LCA Findings
The cradle-to-gate impact of The Orchard Centre is in the
region of 883 kg CO2 per m2. This is within an acceptable
range based on the nearest matching RICS benchmarks of
between 750 and 935 kg CO2 per m2 for comparable
buildings
We also found that there is scope to reduce the
measured impact of The Orchard Centre to below the
benchmarks through additional analysis or through the
removal and replacement of the aluminium louvre
enclosure to Block A
The cradle-to-grave impact of the development is in the
region of 1,209.67 kg CO2 per m2, but there are no
recognised benchmarks for us to compare this to
The original design for the proposed foundations was
to be a piling system with piled caps. This has been
replaced with mass filled foundations including strip
foundations. The result of this decision is that the
environmental impact of the development has
increased by approx. 89.67 kg CO2 from 1,120.00 kg
CO2
27 September 2017 14
LCA benefits and costs
27 September 2017 15
BREEAM International: 6 credits can be gained by using IMPACT on a project
BREEAM UK New Construction: 2 Exemplary credits
An initial review by bre suggests that the tool will also satisfy the current
whole-building LCA requirements of LEED
Greater insight on design impacts
And on the small matter of construction costs………….
Source: SPONS Architects and Builders Price Book 2017
Since 2011, Guildford Borough Council (GBC) has had a
requirement in place to reduce carbon dioxide emissions by
10% through the use of Low and Zero Carbon (LZC)
technologies. This is set out in Action 4 of its Sustainable
Design and Construction Supplementary Planning
Document (SPD).
To encourage sustainable growth, GBC set out what the
additional cost would be for a developer if this target was
strengthened to 15% and 20% against a 10% baseline cost.
GBC commissioned EVORA EDGE to provide a report
detailing the typical costs of implementing LZC technologies
that would meet these standards. In doing so, it aims to
support the policies contained in the new Local Plan and in
the existing SPD.
A core part of our work involved the creation of a building
information model (BIM) using IES engineering software -
the Virtual Environment (VE).
Uniquely, EDGE used its BIM:SAM processes to undertake
the project. Building costs were taken from SPONS
Architects & Builders Price Book and SPONS Mechanical &
Electrical Price Book – 2017 editions, and incorporated
within our engineering software.27 September 2017 19
Using IMPACT to support GBC
As a result of our study, GBC has proposed in its consultation documents a reduction in CO2 emissions of 20% to most new developments
27 September 2017 20
Placing BIM at the Heart of Strategic Asset Management
BIM PROJECTS
Capital Costs (RICS NRM format)
Life Cycle Costs
Life Cycle Assessment (Resource efficiency)
Planned Preventative Maintenance
Feasibility studies
Minimum Energy
Efficiency Standards
Planning & Building
Regulations
Occupier comfort
modelling
Using IES, IMPACT and our own software SIERA. EVORA is engaged in projects to create calibrated energy models and BIMs for asset management, operational management (planned maintenance etc.), energy management and productivity.
Results to be published in October 2017!
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Get in Touch
HEAD OFFICE
Suite 73-74, The Hop
Exchange, 24
Southwark St, London
SE1 1TY
SHREWSBURY OFFICE
2nd Floor
The Pump House
Coton Hill
Shrewsbury
SY1 2DY
Telephone +44 (0)20 3326 7333
Email [email protected]
Socialise @evoraglobal
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@evoraglobal