The business case for green infrastructure A Developer’s perspective Brad Bamfield Chairman The Whole Life Cost Forum MD The Solution Organisation Ltd
Why do Developers Develop ? To make money To improve business reputation To make money To improve the facilities for occupiers To make money To improve the built environment To make money
My message today How to increase the developers yield by 0.5 to 1%
Bottom line A 20,000 sqft £18.50 per sqft 0.5% improvement in yield + £400,000 Yes that is £400,000
Calculating yield Yield is a complex calculation Rent x number of years Includes –Letability –Saleability –Void –Attractiveness to occupiers
Definition of WLC Whole Life Cost is the analysis of all relevant and identifiable financial cashflows regarding the acquisition and use of an asset.
Project Relationships Capital Cost1 Revenue Cost 5x Business Cost200x 1:5:200
WLC – The Big PictureBuild 2 Years Design 1 Year £ 17% £ 3%Operate 25 Years Run / Maintain £ 40% Repair £ 30% Periodic Replacement / Refurbish £ 10%TotalTotalDispose 1 Year 100% Cost of Ownership £ ?% £ ?% Source Gardiner & Theobald
Increasing yield through Living Roofs 2 very similar central London multi let offices One has living roof One has 35% void period of the other One receives 20% higher rent Case study being developed
Springboard Centre, Somerset Non commercial property Living roof 5 year payback –Energy only Case study Includes review of bio-diversity
Laban Centre, Deptford
Here the roof improves the conditions in the building for the users Costs were unnecessarily high through lack of planning and coordination
Working together? Developers & Planners & Planners What does the developer want? –To sell the development! How does the developer sell the development? –By ensuring people want to live/work in it!
Working together? Developers & Planners What does the planner want? –They want the development to work! How does the planner make this happen? –By ensuring people want to live/work in the development! Developers &
Living roofs Make money – Contribute to saving the planet Improve the working environment Sustainability in action lots of it.
The result Developers & Planners; Why can we not work together ? want the same thing
Conclusion Think in terms of Whole Life Costs (not just capital costs) Good quality green infrastructure can: –Let business space –Add value to a property –Reap savings An integrated approach is essential
Brad Bamfield Chairman The Whole Life Cost Forum MD The Solution Organisation Ltd