Energy Saving News
£350 Million Boost To Retrofit UK Commercial Buildings
Non-domestic buildings In the UK currently account for around 18% of the country’s emissions, with most of the buildings over 10 years old and unlikely to be compliant with current or future efficiency standards.
Hence, the UK’s Carbon Trust is looking to raise £350 million for the refurbishment of commercial properties over the next three years, 100 million of it in the next 12 months.
The Carbon Trust in conjunction with fund manager Threadneedle and developer Stanhope they are forming The Threadneedle Low-Carbon Workplace Trust, to fund the transformation of up to 50 commercial buildings.
The refurbished properties will be offered to occupiers at market rates and will meet best practice low-carbon standards.
The scheme doesn’t end there as ongoing advice on how to realise the full efficiency potential will be supplied to the new occupiers. This aspect of the scheme will have the incentive of the Low-Carbon Workplace (LCW) accreditation if the business achieves a verified per person, per day low-emissions target.
There has already been strong interest in the idea, from investors and occupiers. The Carbon Trust reports that over 40 potential occupiers have already expressed interest in the refurbished offices.
Tom Delay, CEO of The Carbon Trust, said:
This initiative aims to prove that green business opportunities can deliver the secure long term returns institutional investors demand, which could be the key to unlocking the low carbon economy. We want to demonstrate the business case for low carbon property, encourage the wider property industry to follow suit and deliver both an economic and a carbon prize for the UK.
Don Jordison, Managing Director, Threadneedle Property Investments said:
We foresee strong interest in this product, there is high demand from institutional investors for property funds which can demonstrate real value added without undermining long term stability and performance.
Of the £46bn in the Investment Property Databank Office Index over 90% is more than 10 years old and highly unlikely to be compliant with current or future carbon efficiency standards. Over the next 5 years 33% of all the leases in this space will expire and we believe a co-ordinated approach to address occupiers and investors needs can’t come a moment too soon.
David Camp, CEO of Stanhope, said:
We have successfully undertaken a number of one-off low-carbon refurbishments for occupiers who have committed to reducing their carbon emissions. For them retrofitting existing building stock has been the most practical way to dramatically reduce their carbon emissions and we are confident that LCW will tap into this growing market.
Monday 15th March 2010
