“Greening Property Valuation in Europe” – Bringing

Transcrição

www.immovalue.org
BEX The Building Exchange 2010, June 7h 2010, Brussels
“Greening Property Valuation in Europe” –
Bringing sustainability to the real estate
market valuation is key
Prof. Dr. Sven Bienert MRICS
Director und Head of Real Estate Advisory Services, Austria
KPMG Financial Advisory Services GmbH
Head of Competence Center for Sustainable Real Estate, Germany
University of Regensburg
Supported by
Bienert – Greening Property Valuation in Europe
CV Bienert
Name
•
Sven Bienert
Position
•
Director, KPMG, Advisory, Head of Real Estate Advisory Austria
•
Professor for sustainable real estate in Regensburg.
•
MBA (Finance), Certified Real Estate Manager (Master) , Dr. rer pol
•
Certified Real Estate Appraiser (Austrian Licence),
•
Member of the Royal Institution of Chartered Surveyors (MRICS)
•
Before joining KPMG Sven Bienert was working for different international leading consulting companies
providing commercial real estate advisory services for professionals in Germany, Austria and Switzerland at
an top executive level.
•
He started his career in a German bank where he gained 4 years of experience in the finance sector. He was
also for 4 years head of the Department of Real Estate Economics at the University of Applied Sciences in
Kufstein-Tyrol, Austria.
•
Sven is still involved in a lot of research and development projects working closely together with different
universities and real estate institutions like ÖVI, RICS, TEGoVA and others. He is further more the founder of
the first “Austrian Real Estate Benchmarking Institute”.
•
He lectures regularly at universities, colleges and conferences on real estate topics and is author and
publisher of several books about valuation and project finance.
•
His real estate team consist of approx.10 professionals based in Innsbruck, Linz and Vienna.
•
Real estate advisory projects range from valuation, portfolio management, feasibility studies, financial
modeling to real estate restructuring. The single asset and portfolio valuations carried out amount to approx.
3 bn. EUR per year.
•
Our Austrian based real estate experts have profound knowledge and market data of all CEE and SEE
markets due to the fact that most of the Austrian listed real estate clients have a strong focus on these
markets.
•
Since 2008 Dr. Bienert started to offer services related to “Green buildings” like LEED certification,
benchmarking, etc. and is project leader for a pan-european project for sustainability and property valuation.
Qualifications
Experience
© 2007 KPMG Financial Advisory Services GmbH, österreichisches Mitgliedsunternehmen von KPMG International, einer Genossenschaft schweizerischen Rechts. Alle Rechte vorbehalten.
Printed in Austria. KPMG und das KPMG-Logo sind eingetragene Markenzeichen von KPMG International.
Green Value vs. Market Value
A Green Building is a property that uses
resources efficiently, reduce waste and CO2
emission, provide superior indoor air and
other qualities, and avoid negative social
impacts.
Energy efficiency is therefore part of the
various green building features.
A Green Value is the net value added
obtainable by a green property in the market
compared to a non-green peer group.
According to the definitions of green and
market value it can be assumed that the
green value is an integral part of the
overall market value.
What does a green building promise?
In US-Numbers (here LEED)...
8-9 % Decrease of operating expenses
7,5 % Increase of the current market value
6,6 % Increase of the ROI
3,5 % Increase of the occupancy rate
3 % Increase of rent
Source: U.S. Green Building Council, Date: 15.04.2008
3
Few empirical results in Europe (hedonic pricing/multiple regression) –
IMMOVALUE research for developed markets
1
Offices with 532 observations
in 57 towns during 2002 - 2005
The „hard“ way: using advanced methods!
2
Question at the beginning: can a single valuer ever
3
Aim: Finding the proof for the connection between
lower energy cost and higher rents
4
Result: 100 % increase in energy cost will shift
rental income up to 9,5 %.
5
So up front investment cost for energy saving can be
compared to rental premiums
6
perform this for every valution? - NO
There is no “One fits all marktes rule”!
8767 flats in Vienna,
Data set from 2004 - 2007
4
Interim results – European property valuation practice (IMMOVALUE-Survey)
Final results will be available soon at IMMOVALUE website – www.immovalue.org
Already observed quantitative differences between energy-efficient and
conventional properties
yes (42% )
no (58% )
How value difference for energy-efficient properties has been
implicated
1 % to 3 %
Related to which type of property the value difference occured
One-/Two-Family-Houses (24% )
3 % to 5 %
n.a.
M ulti-Tenant -Residential
Property (26% )
Office (26% )
remaining economic
lump-sum (14% )
lifetime (13% )
M arket rent (30% )
Hasbeen energy efficiency already be considered within the qualitative
descriptive part of valuation
n.a.
10% to 20 %
5% to 10 %
Differencein market value on average
Valuation parameter used to expresse quantitative value differenece
both
(7% )
discount (10% )
premium (21% )
Discounted-Cash-Flow (33% )
Direct Cap italisation (45% )
0%
10%
20%
30%
Yield (7% )
not yet, but considering (37% )
yes (48% )
Whichwell-known valuation approachesare most appropriate for
integration of energy efficiency
maintenance cost
(20% )
Condominiums
(13% )
40%
50%
60%
70%
n.a.
OPEX
(7% )
n.a.
no (13% )
Cost Appr. (12% )
80%
90%
sales comp.
approach
100%
5
Integration of green attributes – three major obstacles (Or why markets failed)
Cognition
Society in general
CO2 reduction
Saving limited resources
Indirect social benefits
Physiological benefits
(improved health)
Problem
Solution
Effect
Positive/negative
external effects of a
property but no
sufficient market
value impact
Restrictions/penalties/
public grants for
negative/positive
external effects by
Government
“Limit of
System”
Recognized claimed
improvements but
limited market
impact
Transparent
communication of
(intangible) benefits
and productivity gains
“Limit of
Focus”
Tenant - intangible
Wellbeing of employee
Corporate responsibility
Occupational health
and safety
Productivity of core business
Tenant - tangible
Occupational Costs
(rent & operative
expenses)
Other Lease Terms
Does it pay off?
and in more detail
Does “Green” pay off?
Financial figures
e.g.:
NOI, ROI, Yield
GDV, MLV etc.
“Limit of
Practise,
Evidence
and
Methods”
6
Some basic answer & discussion points!
1
2
Could there be a general premium / discount rule ? NO
(due to willingness to pay)
Do we need new valuation methods? NO
(since existing tools can display everything)
3
Could there be a pan-European approach/guidance
4
Should we distinguish between developed and less
5
Do we also need to revise report
6
to these aspects? YES
(since the fundamental challenge is the same)
transparent markets? YES
(since data input is required for proper calculation)
structures accordingly? YES
(since the aspects need to be addressed in the text)
Since in principle things are not new. Are there already
valuers who handle this aspect in the right way? NO
(since some training will be necessary for everyone)
IMMOVALUE Project
Contact
´
Prof. Dr. Sven Bienert, MRICS
Director
Tel.
+43 512 599 96-5321
Fax.
+43 512 599 96-5021
e-mail
[email protected]
Address
Kudlichstraße 41-43
4020 Linz
Adamgasse 23
6020 Innsbruck
Publication supported by:
8
Bienert – How does cost of energy affect your real estate business
Published empirical research results on green value
Country
USA
USA
(Mc Graw, Hill
Construction 2005)
USA
USA
USA
Australia
(Mc Graw, Hill
Construction 2008)
(Miller et al. 2008,
using CoStar
Database)
(Fürst, McAllister.
2008,
using CoStar
Database)
(Eichholtz et al. 2009,
using CoStar
Database)
(Bowman, Wills
2008)
-
-
-
-
-
-1.50%
3.00%
6.10%
-
-
3.00%
Energy Star
-
-
2.80%
-
-
LEED
-
-
0.30%
-
-
Energy Star/LEED
-
-
-
11.80%
-
-
-
-
-
6.00%
-
8.00-9.00%
13.60%
-
-
-
-
-
-
-
-
-
0.25-0.50%
Improved ROI
6.60%
9.90%
-
-
-
-
Increase occupancy ratio
3.50%
6.40%
-
-
-
-
Market value
7.50%
10.90%
-
-
-
-
Selling price
-
-
-
-
16.00%
Energy Star
-
-
5.76%
10.00%
-
LEED
-
-
9.94%
31.00%
-
Energy Star/LEED
-
-
-
11.40%
-
Variable
Rental Growth for non-Green
Rent Premium for Green
Effective Rent
Decrease Operating Expenses
Reduction cap rate
9
Bienert – How does cost of energy affect your real estate business
Theoretical potential rent premium
Total occupancy costs
(for tenant)
Conventional building
Recoverable operating
expenses
Rent = gross income to
owner
Highly energy-efficient
building
Recoverable operating
expenses
Reduced energy costs
Δ = max. potential rent
premium to owner
Rent = gross income to
owner

“Greening Property Valuation in Europe” – Bringing

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