Main title: Improving the market impact of energy certification by introducing energy efficiency and life- cycle cost into property valuation practice Duration in months: 08/2008 – 03/2010 (20 months) Acronym: IMMOVALUE Agreement number – IEE/07/553/SI Date:

1 Summary/overview of the project PROJECT SUMMARY As one of the largest single operating expenses, energy costs are usually an important factor concerning the overall property Value. This survey includes:  Integrate indicators of energy performance of buildings and life-cycle cost results into property valuation practice  The solution will be tested in pilot projects and will pass a comprehensive review of experts  Results of the proposed action will be disseminated

2 Summary/overview of the project BACKGROUND As one of the largest single operating expenses, energy costs deserve great attention from banks, valuers, owners and property managers. Looking at income-producing properties, such costs often represent up to 30% of the net operating income (NOI). Constantly rising energy prices amplify the need to focus on energy efficiency and a life-cycle perspective of the property in the future. Energy performance certificates will be available in all European countries and provide comparable information on the energy performance.

3 Summary/overview of the project OBJECTIVES AND MAIN STEPS Preparing useful guidelines for the daily property valuation business thus ensuring that energy efficiency and LCC aspects are properly included in the calculations carried out to derive market values. Testing the drafted methodologies in pilot projects and getting support from key actors and decision makers in the real estate business. Finally communicating and disseminating the project results to the customers of valuers, which are mostly financial institutions, banks and real estate companies.

4 Summary/overview of the project EXPECTED RESULTS The main output of the proposed actions are guidelines for revised standards of property valuation integrating energy performance an LCC aspects, which may serve as basis for further work in the relevant standardisation and training organisations for property valuation such as RICS, IVSC and TEGoVA. If energy efficiency and low life-cycle cost are reflected in the building value as a common practice, in the medium and long run a radical market transformation in the building sector is expected.

5 PARTNERS & CONTACTS COORDINATOR KPMG Financial Advisory Services GmbH (KPMG FAS GmbH) Sven Bienert Kudlichstrasse 41-43, 4020 Linz AUSTRIA PROJECT PARTNERS: Dr Leopoldsberger+Partner(Germany) SINTEF(Norway) E7(Austria) UTI(Romania) FH Kufstein(Austria)