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Unlocking Developer Yields: The Business Case for Green Infrastructure

Discover how green infrastructure can boost developer yields by 0.5% to 1%, translating to significant financial gains. This presentation highlights the importance of Whole Life Costs (WLC) over mere capital costs, showcasing the benefits of living roofs and sustainable designs. Case studies reveal how green initiatives, such as energy-efficient roofing, improve occupancy rates and attract higher rents. The collaboration between developers and planners is essential for creating spaces that appeal to both residents and businesses, ultimately enhancing both reputation and profit.

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Unlocking Developer Yields: The Business Case for Green Infrastructure

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  1. The business case for green infrastructureA Developer’s perspective Brad Bamfield Chairman The Whole Life Cost Forum MD The Solution Organisation Ltd 07803 133110 Chairman@wlcf.org.ukBrad_Bamfield@thesolutionorganisation.com

  2. 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

  3. My message today How to increase the developers yield by 0.5 to 1%

  4. Bottom line • A 20,000 sqft building • @ £18.50 per sqft • 0.5% improvement in yield • + £400,000 Yes that is £400,000

  5. Calculating yield • Yield is a complex calculation • Rent x number of years • Includes • Letability • Saleability • Void • Attractiveness to occupiers

  6. Definition of WLC Whole Life Cost is the analysis of all relevant and identifiable financial cashflows regarding the acquisition and use of an asset.

  7. Project Relationships • Capital Cost 1 • Revenue Cost 5x • Business Cost 200x 1 : 5 : 200

  8. Design Build Operate Dispose Total Run / Maintain £ 40% 100% Cost of Ownership Repair £ 30% £ ?% £ 3% £ 17% Periodic Replacement / Refurbish £ 10% 1 Year 2 Years 25 Years 1 Year Total WLC – The Big Picture Source Gardiner & Theobald

  9. 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

  10. Springboard Centre, Somerset • Non commercial property • Living roof 5 year payback • Energy only • Case study www.thesolutionorganisation.com • Includes review of bio-diversity

  11. Laban Centre, Deptford

  12. 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 www.livingroofs.org

  13. & Planners Working together? Developers & 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!

  14. Working together? Developers & Planners Developers & • 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!

  15. Living roofs • Make money – • Contribute to saving the planet • Improve the working environment lots of it. Sustainability in action

  16. The result • Developers & Planners; • Why can we not work together ? want the same thing

  17. 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

  18. Brad Bamfield Chairman The Whole Life Cost Forum MD The Solution Organisation Ltd 07803 133110 Chairman@wlcf.org.ukBrad_Bamfield@thesolutionorganisation.com

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