Australian Unity Investments’ (AUI) strategy of improving the environmental efficiency of its properties has resulted in strong ratings for two of its properties by the National Australian Built Environment Rating System (NABERS).
The Royal Prince Alfred Hospital (RPAH) Medical Centre, located in Sydney’s inner west and part of the Australian Unity Healthcare Property Trust (HPT), has earned a four star energy rating and 2.5 star water rating from NABERS, and a commercial office building in St Kilda in Melbourne, part of the Australian Unity Industrial Property Syndicate No.1, has also received a four star energy rating.
Mr Chris Smith, property portfolio manager at AUI, said that improving environmental aspects such as energy usage of a building not only increases its value but makes it more attractive to tenants.
“For instance, since we first started the environmental efficiency project at the RPAH Medical Centre 18 months ago, the value of the building has increased by $1.5 million.
“Furthermore, improving water and energy efficiency in commercial properties such as medical centres and hospitals can make a big difference in operating costs, both for the tenants, and for us as owners.
“Having high NABERS ratings will ensure the properties continue to be competitive and attract quality tenants, which has obvious benefits for our investors in terms of income stability,” said Mr Smith.
“Energy consumption at the RPAH Medical Centre has dropped by just under 40 percent in the last 12 months, and this should decrease further when other initiatives that are currently underway – such as installing variable speed exhaust fans in the car park and installing carbon dioxide monitoring – are completed. We expect this to save an additional 15 percent in energy.
“We have also replaced the building management system and installed an intelligent monitoring system to isolate areas where further energy savings can be made,” he said.
The environmental efficiency project also looked at reducing water consumption at the site.
“As a result, in the last two years we have reduced water usage by 20 percent, sometimes through very simple changes that nevertheless make a major difference to a building’s water consumption.
“For instance, because it was built in 1987, the centre had relatively old-fashioned systems, such as single-flush toilets that were easy to replace with dual-flush toilets, and we also installed hand basins with restricted water flow taps, generating significant consumption and cost improvements,” Mr Smith said.
At the St Kilda property, the upgrade and refurbishment were undertaken in conjunction with the tenant, Austereo Limited, and carried out in the second half of 2009.
Mr Smith said that it was a good example of property owners and tenants working together to improve the environmental impact of a building.
“AUI’s involvement included replacing the air-conditioning system with a more energy-efficient system, and re-using a substantial portion of the original ducting and other components, reducing the need to produce and install new material. Works also included replacing the internal lighting system and modernising the lift controls.
“The refurbishment undertaken by Austereo Limited created an open-plan office space that minimises the need for air-conditioning and artificial lighting, reducing energy consumption,” Mr Smith said.
NABERS measures an existing building's environmental performance during operation. It rates a building on a range of measures such as energy, water, waste and indoor environment.
Australian Unity Investments is the funds management arm of financial services, health and retirement living services provider Australian Unity. It has over $10.4 billion in funds under management*. Its investment approach is to use its established in-house expertise in property and mortgages while also forming joint ventures and strategic alliances with other organisations with specialist expertise.
The HPT currently has over $410 million* in funds under management and holds 20 healthcare properties in New South Wales, Victoria, Queensland and South Australia as well as three vacant parcels of land for future development. The wholesale fund has returned 7.89%* pa over three years, 14.05%* pa over five years, and 13.27%* pa since inception in 2002.
For further information please contact:
Chris Smith
Email: csmith@australianunity.com.au
*As at 31 May 2010. Returns are calculated after fees and expenses and assume the reinvestment of distributions. Past performance is not a reliable indicator of future performance as returns may vary.