Sustainability is an emerging force which has the potential to significantly affect investment returns (both positively and negatively). Recognising the potential for impact upon direct property investment, PFA has established a dedicated Sustainability Committee. This Committee is staffed by a diverse array of sustainability experts whose aim is to inform members of important changes within the sustainability space. Sustainability is a broad and very dynamic area and the Committee hopes to help members understand, reap and promote the economic, environmental and social wealth benefits offered by sustainable property investment.
Importantly, the Committee aims to demonstrate the positive correlation between sustainability practice and improved financial return. In doing so, we hope to cut through the “green wash” and present members with regular updates on key sustainability issues that may impact on direct property investment.
Tony Rose - Lachlan Partners
Ione McKenzie - Property Funds Association
Sustainability Legal Updates
Environmental Upgrade Agreements
Mary Digiglio, partner at SWAAB Attorneys, and PFA have prepared a report explaining the purpose and meaning of Environment Upgrade Agreements.
Mary Digiglio, partner at SWAAB Attorneys recently gave a presentation at the Australian Property Institute on CBD legislation.
IAS 137 - Accounting for the damage
The proposed IAS 137 is forcing finance chiefs to rethink how they manage their liabilities for cleaning up contaminated land - and at least one company is ready with a solution.
Building Energy Efficiency Update
The Commercial Buildings Mandatory Disclosure Regime has undergone amendments, effective 29 November 2010, related to mixed use buildings and refurbishments. The Local Government Amendment (Environmental Upgrade Agreements) Bill 2010 facilitates a financing mechanism for building owners to implement major long term energy efficiency upgrades to buildings.
Low Carbon Australia helping your competitive advantage
There is no better time for business and industry to take steps to improve the energy performance of their buildings and operations, helping reduce costs and become energy smart and carbon savvy.
Investing in building retrofits, smarter new energy technologies and industry process upgrades is critical for long-term sustainability and positioning for the low carbon economy. This can help Australian business retain competitive advantage and will also be kinder to the environment.
Low Carbon Australia is ready right now to provide business with clean energy finance in the form of loans, equipment leases and capital for equipment which will upgrade the efficiency of their operations or buildings. This offers a smart way for business to take advantage of new energy savings technologies like LED lighting and highly efficient heating and cooling equipment through to advanced co-gen and tri-gen projects.
For further information regarding Low Carbon Australia's programs, visit www.lowcarbonaustralia.com.au
API/PFA - Building Better Returns Research Report
Research commissioned by the Australian Property Institute (API) and the Property Funds Association of Australia (PFA) is the first major Australian study to assess the added value of green office buildings in their financial performance. The research was undertaken by the University of Western Sydney (UWS) and the University of Maastricht, Netherlands in conjunction with Jones Lang LaSalle and CBRE.
The report identifies the future challenges and opportunities for the green office building agenda in Australia and provides the economic rationale for sustainable property investment and development.
Sponsors of the project are NAB and Brookfield Multiplex (Platinum Sponsors), Johnson Controls and Verdigris Capital (Gold Sponsors) and Cbus and Local Government Super (Supporting Sponsors).
Additional information: Building Better Returns Research Report (2386k)
API/PFA Seminar - Building Better Returns
API/PFA in Sydney and Melbourne on Building Better Returns which was presented by Dr Nils Kok, co-author of the ground breaking US study Doing Well by Doing Good.
The main topics of discussion were:
- Latest update on the US study
- Discussion on emerging global trends
- Sustainability credentials that international institutional investors are looking for
- Views on the development of the sustainability/investment sector and the future drivers
- What is happening in the Australian context - an overview of the Austrlian Research being undertaken by the University of Western Sydney and Maastricht University in conjunction with CBRE and JLL - "Building Better Returns?"
The A-Z of Property Sustainability
From ABGR to WGBC and everything about sustainability and commercial property in between. Here's PFA's new A-Z Guide to sustainability. What exactly are absorption chillers? What's tri-generation? What does "ESG" stand for? What's "FTSE 4 Good"? All the major acronyms, government programs and funding bodies are defined here, with links for further reading. A product of the ADPIA Sustainability Committee.
While the opportunities associated with embracing sustainability may have been overlooked previously (with the belief that it is just an “additional cost”), recent research and emerging industry response has confirmed there can be substantial benefits for investing in property with strong sustainability criteria. Such benefits may include:
- Greater returns
- Tighter yields
- Better lease covenants
- Rent premium
- Lower outgoings
- Long-term security
Education segments and sustainability market updates will be posted on this website regularly and ADPIA undertakes to further educate members on emerging sustainability trends via the annual conference and other forums as required.