There are a number of questions to be answered:

• Are there any priority issues that need to be managed?
• What needs to be repaired, replaced or improved?
• When do these need to be done?
• What could safely be deferred?
• How much will it cost?
• What will be the return?

Napier & Blakeley have developed software which enables the allocation of budget forecasts as well as the associated tax depreciation benefits that may follow. These forecasts can be viewed by individual asset, by level, or tenancy, by whole building and by whole portfolio, providing an holistic insight to manage expenditure and priorities.

The initial assessment process is made possible by our Services Engineers, Building Consultants and Quantity Surveyors who have current cost information to produce cost estimates and property tax depreciation reporting aligned to the commercial goals of your business and intentions for the property.

Planning your capex strategy can increase your property’s potential:

• Needs can be prioritised.
• Cash flow can be improved through capital allowances and tax depreciation.
• Valuations can be improved.

There are many drivers for capital expenditure and some of the considerations include:

• Age, condition and remaining useful life of the structure, fabric and the building services.
• Performance of plant and equipment such as lifts and air-conditioning.
• Obsolescence, attractiveness to tenants and market positioning.
• Highest and best use.
• Compliance with Building Code, Premises Standards, accessibility, WHS and Environmental and Hazardous Materials.
• Statutory Compliance of the Essential Safety Measures and Building Energy Efficiency Certificates (BEEC) and NABERS prior to leasing or sale.

Here are some recent project examples:

		COMMERCIAL OFFICE PORTFOLIO OF 19 ASSETS – NATIONWIDE Including 108 St Georges Terrace, Perth WA CLIENT:  Brookfield SERVICE COMMISSION: Life Cycle Assessment, 10 year Capital & Maintenance Expenditure Forecast, Asset Registers and associated Tax Depreciation assessments
		RETAIL PROPERTY PORTFOLIO OF 14 ASSETS – NATIONWIDE Including Highpoint Shopping Centre, Maribyrnong VIC CLIENT:  The GPT Group SERVICE COMMISSION: Life Cycle Assessment, 10 year Capital & Maintenance Expenditure Forecast
		PRIVATE HOSPITAL PORTFOLIO OF 20 ASSETS – NSW, VIC, QLD, SA Including Robina Private Hospital, Robina, QLD CLIENT:  Australian Unity SERVICE COMMISSION: Life Cycle Assessment, 10 year Capital & Maintenance Expenditure Forecast
		6 STAR AGED CARE AND INDEPENDENT LIVING, VAULCLUSE Including 2 Laguna Street, Vaucluse, NSW CLIENT:  Mark Moran Group SERVICE COMMISSION: Life Cycle Assessment, 10 year Capital & Maintenance Expenditure Forecast
		AGED CARE AND RETIREMENT LIVING PORTFOLIO, NSW & QLD Southern Cross Care Residential Aged Care, Daceyville NSW CLIENT:  Southern Cross Care SERVICE COMMISSION: Life Cycle Assessment, 10 year Capital & Maintenance Expenditure Forecast
		COMMERCIAL OFFICE PORTFOLIO, NSW & QLD Including 50 Pitt Street, Sydney NSW CLIENT:  Mirvac SERVICE COMMISSION: Life Cycle Assessment, 10 year Capital & Maintenance Expenditure Forecast

Our Transaction Advisory team is able to provide the following services for your projects:

• Land transaction technical due diligence
• Project / development monitoring
• Property transaction technical due diligence and benchmarking
• Property condition assessments
• Capital and maintenance expenditure forecasts
• Operational performance reviews and expenditure analysis
• Energy efficiency assessments
• Building improvement reports
• Environmental and hazardous materials assessments
• Regulatory compliance reports, BCA, OHS/WHS, ESM
• Town planning reports
• Land and lease surveys
• Indicative property depreciation schedules
• Replacement cost estimates
• Landlord and tenant dilapidations
• Make good assessments and negotiations

Please do not hesitate to call us to discuss your project:

NATIONAL Rob Howells o.  03 9915 6300 m. 0437 649 082 e.  rhowells@napierblakeley.com	PERTH Graham Rigby p.  08 9489 4895 m. 0419 847 998 e.  grigby@napierblakeley.com
SYDNEY Peter Osborn o.  02 9299 1899 m. 0439 765 571 e.  posborn@napierblakeley.com	BRISBANE Gavin Peach o.  07 3221 8255 m. 0412 225 781 e.  gpeach@napierblakeley.com

For 33 years and counting Napier & Blakeley have been providing the following services to the property industry:

• Property Acquisition & Disposal Technical Due Diligence
• Property Development Due Diligence
• Quantity Surveying
• Capital Expenditure Forecasting
• Make Good Reporting
• Energy Management
• Development Monitoring
• Property Tax Depreciation

Please contact any of the people below for more information or assistance:

SYDNEY Alastair Walker Managing Director o.  02 9299 1899 m. 0419 503 289 e.  awalker@napierblakeley.com	MELBOURNE Craig Smith Director o.  03 9915 6300 m. 0407 371 664 e.  csmith@napierblakeley.com
BRISBANE Paul Mazoletti National Director o.  07 3221 8255 m. 0408 749 202 e.  pmazoletti@napierblakeley.com	SINGAPORE Peter Mitchell Chairman o.  +65 6550 9642 m. +65 9670 9435 e.  pmitchell@napierblakeley.com

Commercial Building Disclosure (CBD) is a national program designed to improve the energy efficiency of Australia’s large office buildings.

The disclosure requirements under the CBD program will commence on 1 November 2010.

The CBD program will ensure that credible and meaningful energy efficiency information is available to prospective purchasers and lessees of large commercial office space. Owners and lessors of commercial office space with a net lettable area of 2,000m² or more will be required to disclose energy efficiency information to prospective purchasers and tenants when the space is to be sold, leased or subleased.

Transitional Provisions

The legislation contains transitional provisions that will apply for the first twelve months of the program (i.e. from 1 November 2010 to 30 October 2011). During this period, a valid National Australian Built Environment Rating System (NABERS) Energy base or whole building rating, must be disclosed. After the transition period, a full Building Energy Efficiency Certificate (BEEC) is required to be disclosed.

Requirements for a Building Energy Efficiency Certificate

The requirements to disclose a BEEC will commence in the second year of the program (i.e. from 1 November 2011) and will include three components:

1.   a NABERS Energy base building rating
2.   tenancy lighting information
3.   generic energy efficiency guidance.

The BEEC will be valid for up to 12 months. At the time of disclosure, the certificate will need to be valid, current and registered on the publicly accessible registry on the program’s website.

For More Information

A new CBD program website has been established, with links to the Act and subordinate legislation:  www.cbd.gov.au

NABERS Energy Base Building Rating Checklist

The following information is required for a NABERS Energy Base Building rating. This checklist covers the minimum of information needed, but individual ratings may require additional information or documentation depending on the individual circumstances of the premises.

Rated Hours 

• Documentation notifying the building manager of agreed Hours of Service for normal and after-hours operation.
• After-hours air conditioning request logs.
• Any documentation required to verify hours of occupancy over 60 hours a week.
• Permission from any affected third parties to survey staff managers or supervisors responsible for the Functional Spaces in the premises to be rated to determine hours of occupation; and the survey itself, if required.

Energy & Water Usage

• Single-line diagrams, electrical circuit schedules and diagrams to ensure all energy sources are included.
• Evidence of accuracy and validation of high-voltage electricity meters and all other non-utility meters and records of non-utility meters.
• Documentation of any agreements between tenants or between building owner and tenants, to allocate costs or responsibility for consumption (for example for shared facilities or shared supplies).
• Utility billing data covering the full 12 months of the Rating Period for each energy source (e.g. Electricity, gas, diesel) used in the rated premises.
• Bills for deliveries of any discrete (batch) supplies, showing quantities delivered and how they were measured.
• Documentation of any GreenPower purchases, including the allocation of bulk purchases.

Penalties

Failure to disclose may result in civil penalties of up to $110,000 for the first day and $11,000 for each subsequent day may be imposed by a Court for each breach of a disclosure obligation. Alternatively, the Secretary of the Department of Climate Change and Energy Efficiency can issue an infringement notice of up to $11,000 for the first day and $1,100 for each subsequent day of non-compliance.

Further penalties may apply for various breaches of the CBD.  Refer to the website for further information www.cbd.gov.au.

Have you got a CBD action plan ?

Napier & Blakeley are experts in the provision of strategic property advice and can assist in getting your property ready for the demands of this new legislation.

Call Napier & Blakeley today to ensure you are ready for this legislation.

With over 25 year’s industry experience, we can assist you in:

• Sustainable Property Solutions
• Quantity Surveying
• Property Depreciation Allowances
• Green Star & NABERS Ratings
• Due Diligence & Capex Planning
• Insurance Reinstatement Costs
• Project Management

Our strategic, cost effective advice will best position your property for the future.

NSW / ACT / WA / NZ  -  Rod Clarke, Alastair Walker -  02 9299 1899
VIC /  SA  / TAS  -  Peter Frith, Rob Howells -  03 9915 6300