Commercial property finance, Nedbank Corporate Property Finance has positioned itself as a leader in the green building movement in South Africa gaining an undisputable reputation as the green bank because of its commitment to sustainability.
Nedbank’s regional head office currently underway at Menlyn Maine, Pretoria was awarded the 4-Star Design Green Star SA award
It was the first African bank to subscribe to the Equator Principles, a set of international banking guidelines to ensure that projects financed are socially responsible and environmentally sound.
It also established the first conservation partnership with World Wildlife Fund on the African continent, is a member of the United Nations Environment Programme Finance Initiatives, a signatory to the United Nations Global Compact and a founding member of the UN’s Climate Neutral Network.
Nedbank Corporate Property Finance has been actively involved in six of the seven buildings (financed six and occupies three) that have been awarded the Green Star SA Ratings by the Green Building Council of South Africa (GBCSA).
The bank’s green properties include Nedbank Phase 11 in Johannesburg, Nedbank Ridgeside Office Development in Umhlanga, Durban and the Nedbank Menlyn Maine Falcon Building in Pretoria, Gauteng.
Frank Berkeley, managing executive of Nedbank Corporate Property Finance says climate change poses both risks and opportunities to all parts of the business sector.
He says it is estimated that buildings consume 40 percent of the world’s energy through their construction and ongoing operation.
“It is for this reason that Nedbank believes in playing its part in mitigating the risks of climate change while tapping into the opportunities that it brings.”
He explains that there is a business case for building green as well as greening existing buildings. Going green is not just about the environment, the benefits of building and operating green buildings include reduced operating costs.
These are especially important considering South Africa’s rising energy costs and water scarcity and lower risks, improvements to worker productivity and ultimately, better investment returns and higher property valuations, he says.
“Globally, property owners and developers face the challenge of ‘future-proofing’ their buildings against rising utility prices and costly retrofits.”
Going green is now widely regarded as the smart choice which encompasses sustainability, accountability, aesthetics and crucial profitability. Click here to read more about green buildings and property prices.
A research report by GBCSA revealed that the sustainability of the property sector could be at stake and green building is a more efficient way of developing and operating buildings.
Berkeley says Nedbank is not only at the leading edge of enhancing value, profitability and sustainability through green building practices in its own buildings - the bank also ensures that its clients and the local property industry have access to the latest trends, information and technology through the GBCSA Convention and Exhibition, allowing them to harness fully the business benefits of green building.
A research report by GBCSA revealed that the sustainability of the property sector could be at stake and green building is a more efficient way of developing and operating buildings.
It stated that judging by the rapid growing demand for green buildings and increasing numbers of tenants prepared to pay higher rentals for ‘green’ premises, green building will, over time, have an impact on conventional building stock.
According to the GBCSA, by supporting green building practices, the property industry in South Africa can position itself as a leader in addressing some of the most pressing environmental issues.
This can also ensure its own sustainability by owning and developing ‘future proof’ buildings - constructing property portfolios which both manage the current and future risks and tap into the opportunities brought by the fast-growing new global trends.
To date, the GBCSA has awarded Green Star SA Ratings to seven buildings in South Africa. Two of these have achieved both Office Design and Office As Built ratings.
These are:
- Nedbank Phase 11, Johannesburg (4 Star Green Star SA – Office Design v1 and 4 Star Green Star SA – Office As Built v1 rating)
- Nedbank Ridgeside Office Development in Umhlanga Durban (4 Star Green Star SA – Office Design v1)
- Nedbank Menlyn Maine Falcon Building in Pretoria (4 Star Green Star SA – Office Design v1)
- The Aurecon Office Building in Century City, Cape Town (5 Star Green Star – Office Design v1)
- Aurecon’s Tshwane offices in the Lynnwood Bridge Office Park, Pretoria (4 Star Green Star SA – Office Design v1)
- 24 Richefond Circle in Umhlanga, Durban (4 Star Green Star SA – Office Design v1 and 4 Star Green Star SA – Office As Built v1 rating)
Asked about the cost of going green in South Africa, Ken Reynolds, Nedbank Corporate Property Finance Gauteng regional executive says a typical 4 star rated green building will cost between 5 percent and 10 percent more than a standard developers’ building.
This additional cost, he explains is offset by the savings in operating costs such as electricity and water.
Asked about the cost of going green in South Africa, Ken Reynolds, Nedbank Corporate Property Finance Gauteng regional executive says a typical 4 star rated green building will cost between 5 percent and 10 percent more than a standard developers’ building.
“The payback period on the additional expenditure is between three and five years and after the payback period, there is a financial benefit to owning a green building,” says Reynolds.
On financing property investors going green, he says the bank’s approach to financing a green building is very similar to a standard building.
“The cashflows from a green building over time should be better than that of a standard building so we may be able to lend slightly more.”
He says Nedbank Corporate Property Finance is currently involved in the development and financing of a number of green buildings, a trend he says is likely to continue as there is financial benefit and green aspects attached.
He points out that a number of multi-national and larger companies are judged on the triple bottom line so they are moving towards green buildings which will increase the demand.
He adds that it is not only new buildings that are going green, but a number of property owners are retrofitting their buildings with energy efficient equipment such as lights and mechanical plant which may be making a larger contribution to greening than new green buildings. – Denise Mhlanga
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