Retrofit : Retrofit Volume 2 Issue 1 2013
32 • RETROFIT AUSTRALIA • VOLUME 2 NUMBER 1 2013 | Finance and Funding energy that is saved. Essentially, the legislation offers full tenant protection so that, at worst, it's a cost-neutral outcome for the tenant, and in this case, the amount paid by the tenant is expected to be less than the cost savings they benefited from.' From the tenant's perspective, Lindsay Haraldson of Government Property NSW says, 'We are committed to reducing energy consumption and achieving emission reductions in all the buildings we tenant. In the case of Valentine Avenue, careful calculations showed that our EUA contributions would be less than the savings we would make in our energy costs, so it also made sense from a financial point of view.' The tenants were also committed to ensuring that the lights met all Australian standards, as required in an EUA, and the highest quality of upgrade was received. This means installing lights with enclosed diffusers, and, in this case, providing perimeter wall washing. Studies have shown that this type of improved quality of lighting has correlated with increases in productivity, increases in job satisfaction, and decreases in absenteeism and staff turnover -- definitely a positive benefit for tenants. Getting the project off the ground 'Parramatta City Council worked with Government Property NSW, Australian Unity Investments, and National Australia Bank to achieve this first EUA milestone. We had discussions with Government Property NSW and were asked to examine which buildings in Parramatta may be suitable for lighting upgrades. 10 Valentine Avenue was a highly suitable building. Negotiations took place between Government Property NSW and Australian Unity Investments, with Walker EcoStrategies and Parramatta City Council facilitating discussions,' says Matt Fisher. From the outset, both parties saw the benefit. Through detailed calculations carried out by Roger Walker of EcoStrategies, the actual costs and cost savings were presented to both parties. Based on these calculations, both parties were happy for the proposed project to be carried out under an EUA, and agreements were initiated. At this point, Australian Unity Investments commenced discussions with the National Australia Bank, and all parties worked together to complete the EUA documentation. Looking at this from the owner's perspective, Grant Nichols, Property Portfolio Manager at Australian Unity Investments, commented, 'By entering into an EUA at 10 Valentine Avenue, Australian Unity Investments has been able to improve the building's energy efficiency, engage collaboratively with the tenant and diversify our funding arrangements. As an owner of commercial property, it is important to continue to improve building efficiency to protect asset value and attract and retain tenants.' From the tenant's perspective, is there any associated risk with the agreement? A perceived risk to tenants is that contribution payments towards the upgrade are greater than the actual The first EUA in New South Wales is signed -- from left to right: Matt Fisher, EUA Program Coordinator, Parramatta City Council; Cr John Chedid, Lord Mayor of Parramatta; Jacob Croker, Divisional Director, Australian Unity Investments Portfolio; Damien Hor, Senior Property Portfolio Officer, State Property Authority.
Retrofit Volume 1 Issue 2 2012
Retrofit Volume 2 Issue 2 2013