Bottom line benefits

Real Value in Central London
Our Central London Office (CLO) portfolio is an example of how we instil RPI through all of our real estate activities, delivering bottom line benefits to our clients and our occupiers.

Assessing risks and opportunities

Responsible investment Our Cost Benefit Analysis tool and Sustainability Rating System will help us identify the most cost effective sustainability measures that we should be implementing to reduce risks and improve the efficiency of our buildings.

Responsible development: We implemented our Responsible Property Development approach on all our major development and refurbishment projects in 2008, including 20 Gresham Street and 1 Finsbury Circus. By incorporating a range of sustainability features we ensure our developments match market demand and we minimise the risk of depreciation in the future, thus protecting long term financial performance.

Creating value for our occupiers

Responsible management: Throughout our CLO portfolio, Jones Lang LaSalle, our Property Manager, provides all occupiers with a comprehensive RPM package, including a central waste management system and energy consumption profiling.

Operational savings: Our like for like CLO portfolio reduced its carbon emissions by 5.2% over 12 months, leading to energy cost savings of approximately £60,000. All properties, bar one, have moved to a centralised recycling scheme, which means that no owner-controlled waste is being sent direct to landfill, saving £16,000 in direct landfill tax costs. Waste sent to energy recovery also contributes to producing electricity and hot water for local housing.

Occupier engagement: In partnership with the Better Buildings Partnership and Green500, we are establishing Joint Carbon Programmes with willing occupiers, pledging to work together to reduce carbon emissions.

Real Value in our Retail Portfolio
Our retail portfolio provides us with great opportunities to work with occupiers and local communities to implement significant responsible investment initiatives. These deliver cost savings to our occupiers and enhanced returns for our clients.

Assessing risks and opportunities
Our Cost Benefit Analysis tool combined with our Sustainability Rating System will help us estimate for a Shopping Centre or Retail Park the relative risks of assets with varying sustainability characteristics and identify the most cost effective improvement measures that we should be implementing.

Community Engagement: This programme helps us to deliver our corporate social responsibility duties and it supports our Pension Fund client’s compliance with Pensions Act requirements to state the extent to which it takes into account sustainability in the selection, retention and realisation of investments. By preventing degeneration, increasing security and developing strong occupier relations we help to sustain asset values.

Creating value for our occupiers
Operational savings:. One area where we have seen significant success over the past 12 months is waste management at our shopping centres. Less than 5% of owner-controlled waste is sent direct to landfill and we expect this to be zero by the end of 2010. This has resulted in savings of £135,000 in energy costs and over £200,000 in direct landfill costs during 2008, thus reducing costs for our occupiers.

Occupier engagement: Through a range of initiatives, including energy league tables, energy awards and sustainability awareness weeks and by providing supply chain solutions we have been able to support our occupiers in reducing their own energy use and water consumption, improving waste management and reducing costs.