Are you aiming to enhance the sustainability and efficiency of your building?

NABERS is currently offering grants across various sectors, including apartment buildings, hotels, residential aged care, retirement living, office tenancies, warehouses, and cold stores.

Our experienced assessors can assist you in the application process and subsequently carry out NABERS ratings along with associated improvement plans.

This comprehensive service not only enhances your chances of grant approval but also ensures your asset operates efficiently and sustainably, thereby maximising returns and minimising investment risks.

Grants of up to $4,500 per building (excluding GST) are available for first-time energy and water ratings. The NABERS funding covers consecutive ratings and initial improvement plans, representing approximately 50-60% of the project value over a span of 12-18 months. This opportunity is specifically for Energy and Water Ratings in NSW.

Ready to take a leap towards sustainability and elevate your asset’s performance? N&B possesses the expertise to assist you. Act now, as applications close on June 30, 2024.

For further information, contact:  Ian Gardner  |  0488 225 569  |  igardner@napierblakeley.com 

We take great pleasure in announcing that Ian Gardner will become a Director of Napier & Blakeley, effective from 1st July 2022.

Ian has been with us since 2018 and is highly regarded by clients and colleagues alike.

To meet the growing demand for the analysis and reporting on building performance, carbon reduction, climate risk and building resiliency, Ian will head up a new business unit focusing on Sustainability, Climate and ESG.

Ian has developed a market leading profile in this area within technical due diligence and asset management, and has become the first port of call for a range of both national and international property investors, owners and managers.

Ian has also been instrumental in developing our digital building consultancy and asset database solutions, integrating advisory with quantity surveying and tax depreciation.

This appointment aligns directly with our strategic plan, and to inform B2B property decisions through the lens of Cost, Risk & Return – helping our clients act with confidence, improving the quality and resilience of the property sector and the built environment.

Please contact Ian for any assistance or advice relating to Sustainability, Climate & ESG.

MELBOURNE
Rob Howells, Managing Director | 0437 649 082 | rhowells@napierblakeley.com
Peter Frith, Director | 0437 649 082 | pfrith@napierblakeley.com
Craig Smith, Director | 0407 371 664 | csmith@napierblakeley.com
Ian Gardner, Director | 0488 225 569 | igardner@napierblakeley.com
John Atkins, Director | 0456 644 052 | jatkins@napierblakeley.com

SYDNEY
Alastair Walker, Director | 0419 503 289 | awalker@napierblakeley.com
Peter Hammond, Director | 0419 980 901 | phammond@napierblakeley.com
Peter Osborn, Director | 0439 765 571 | posborn@napierblakeley.com
Michael Ross, National Head of Tax | 0403 841 175 | mross@napierblakeley.com
Stephen Cooke, Associate Director | 0409 228 552 | scooke@napierblakeley.com

BRISBANE
Paul Cosker, Director | 0434 400 107 | pcosker@napierblakeley.com
Adam Greene, Associate Director | 0409 724 395 | agreene@napierblakeley.com
Gavin Peach, Associate Director | 0412 225 781 | gpeach@napierblakeley.com
KY Pih, Associate | 0408 933 660 | kpih@napierblakeley.com

PERTH
Graham Rigby, Associate Director | 0419 847 998 | grigby@napierblakeley.com

ADELAIDE
Sam Grindley, Associate | 0460 032 142 | sgrindley@napierblakeley.com

The policy has immediate effect with a target to achieve full compliance by June 2020.

The GREP targets broad range of areas to drive resource efficiency in NSW Government agencies in the four main areas of energy, water, waste and air emission including:

• Reporting resource consumption and waste
• Targeted energy savings
• Mandating minimum NABERS ratings for energy and water
• Minimum standards for electrical and water using appliances and equipment
• Minimum standards for new buildings and fitouts
• Solar targets
• Minimum fuel efficiency vehicle standards
• Purchase of GreenPower
• Emissions standards for fixed plant and equipment
• Low VOC materials

You can access the full policy here. Similar requirements are in place for most States and the Australian Government.

Napier & Blakeley can assist with:

• NABERS improvement plans (including energy efficiency assessments and CAPEX plans)
• Accredited NABERS Independent Energy Design Review for Commitment ratings
• NABERS and CBD Assessments
• Building control and operational tuning
• Independent Measurement and Validation services (Certified Measurement and Verification professional), Including for EUA, ESCO and ESPC agreements
• General Sustainability advisory services (NABERS, Green Star, WELL, GRESB)
• Condition and Lifecycle reviews
• Asset and Facility Management advisory services

For any further information on this please contact:

IAN GARDNER Associate Director m.  0488 225 569 e.   igardner@napierblakeley.com

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For 34 years 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 m. 0419 503 289 e.  awalker@napierblakeley.com		Peter Hammond Director m. 0419 980 901 e.  phammond@napierblakeley.com
	Peter Osborn Director m. 0439 765 571 e.  posborn@napierblakeley.com		Stephen Cooke Associate Director m. 0409 228 552 e.  scooke@napierblakeley.com

MELBOURNE

	Craig Smith Director m. 0407 371 664 e.  csmith@napierblakeley.com		Rob Howells National Director m. 0437 649 082 e.  rhowells@napierblakeley.com
	John Mathew Director m. 0414 559 326 e.  jmathew@napierblakeley.com		Ian Gardner Associate Director                            m. 0488 225 569 e.  igardner@napierblakeley.com
	Richard McOmish Associate Director m. 0409 478 460 e.  rmcomish@napierblakeley.com

BRISBANE

	Paul Mazoletti National Director m. 0408 749 202 e.  pmazoletti@napierblakeley.com		Gavin Peach Associate Director                             m. 0412 225 781 e.  gpeach@napierblakeley.com
	Adam Greene Associate Director m. 0409 724 395 e.  agreene@napierblakeley.com		Paul Cosker Associate Director m. 0434 400 107 e.  pcosker@napierblakeley.com

PERTH

	Graham Rigby Associate Director m. 0419 847 998 e.  grigby@napierblakeley.com		Nick Taylor Senior Associate                         m. 0418 337 225 e.  ntaylor@napierblakeley.com

ADELAIDE

John Mathew Director                                                                                             m. 0414 559 326 e.  jmathew@napierblakeley.com

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Based in Melbourne and working with our national teams, Coco will add further value to both our property development and asset advisory services – with particular focus on compliance, strategic asset management and client relationships.

Previously, Coco has worked for an international Quantity Surveying firm, laterally specialising in technical due diligence reporting, feasibility analyses, replacement cost assessments, tax depreciation assessments, capital expenditure forecasts and sinking fund reviews, for owners of large public and private property trusts, portfolios as well as development clients.

Coco also has extensive experience working for a large Building Surveying firm, focusing on building compliance reporting, essential safety measures assessments and client relationships for a range of owners and property types, including universities, large hospitals, government portfolios, public private partnerships assets, multi-storey residential, commercial, retail and industrial.

Over her career of nearly 25 years, Coco has developed an intimate knowledge of property markets and the industry, having worked with many major consultants and owners of large private and publicly owned assets.

Coco will work closely with all parts of our business, adding value to:

• risk management and building compliance;
• strategic asset management;
• technical due diligence and development monitoring;
• lifecycle assessment and capex planning; and
• client relationships;

m. 0418 348 712
e.  cowilliams@napierblakeley.com
a.  L13, 90 Collins Street, Melbourne VIC 3000

Triptych was developed by RI Group and Stable Property Group and on the night Stable’s Managing Director Danny Flynn accepted the award on behalf of the team. Napier & Blakeley worked on the project with Stable. 

Napier & Blakeley managing director Alastair Walker said “this is a fantastic result for Stable and we are proud to have worked with Danny and his team on this development. Triptych was also a finalist in the highly regarded Sustainability division of the awards as well, because of it’s clever design and use of sustainable materials.”

Stable, through its Lifestyle Working brand, have completed a sustainable office development at Brookvale in Sydney and are currently developing their next Lifestyle Working development in JV with Lend Lease in Collins Street in Melbourne.

The other winners were:

• Fairfax House for Australian Development of the Year
• Martha’s Point for Gadens Lawyers Award for Retirement Living Development
• Pixel for Nepean Award for Innovation
• Fairfax Media House for Project Control Award for Best Workplace Project
• Michael Skelton of Davis Langdon won the Judd Farris Award for Future Leader
• Sydney Corporate Park for Bluescope Buildings Award for Best Business or Industrial Park
• Fairfax Media House in Sydney for Colliers International Award for Best Office Development
• Chatswood Chase Sydney for Ray White Retail Award for Best Shopping Centre Development
• Crowne Plaza Adelaide for Ryan Lawyers Award for Best Tourism and Leisure Development
• Urban Renewal Brisbane – 20 years for the Philip Chun Award for Government Leadership
• 39 Hunter St Sydney for the S4B Studio Award for Best Heritage and Adaptive Reuse
• Becton’s Newleaf – Bonnyrigg Living Communities Project NSW for the Grocon Award for Best Master Planned Community
• The Charles Tasmania for the Woodhead Award for Best Mixed Use Development
• MONA – Museum of Old and New Art Tasmania for the John Holland Award for Best Public Building
• Carnegie Morgan Hill House NSW for the Thinc Award for Best Sustainable Development Existing Buildings
• iseek Data Centre QLD for the WSP Award for Best Sustainable Development New Buildings

In the last year Napier & Blakeley

It’s rare to find nothing that would be considered problematic for an incoming owner, but the last few years there have been a few issues that have become commonplace through either lack of ongoing investment and maintenance or as a result of new market legislation.

The GFC brought substantial financial constraints to the entire economy but for property owners it brought pressures through loan to value ratios (LVR’s), reductions in value and rental income. This created a catch 22 situation where many knew they had to keep maintaining and spending capital to keep their assets compliant, relevant and therefore rentable, but were unable to directly fund or borrow funds to do so.

We recently re-analysed an asset that we had prepared due diligence and capex forecasts for a few years ago, and the list of items that we identified in our initial report were almost completely the same as now. Nothing had been fixed, maintained or repositioned. So, many years down the track the asset has fallen deeper into redundancy and therefore costs more to rectify.

The other more recent trend that has pretty well become standard during due diligence is the of analysis of energy consumption and modelling future asset potential to reduce energy. This trend is driven by rent, NABERS disclosure legislation and also with the future cost of energy in mind.

Over the last 2 years the federal Government ran the Green Building Fund initiative which provided up to 50% of the expenditure required by an owner to sustainably retrofit their asset.

This initiative was worth approximately $120m so therefore an overall value of retrofitting projects of $240m. We estimate conservatively that there could be well in excess of $2b worth of retrofit requirements, especially when you consider that 35-40% of the rental marketplace are Government type tenants that require minimum 4 to 4.5 star NABERS rated assets to lease. As an example, there are many Premium and A Grade commercial offices that are substantially below that level of rating, some hovering at around a 1 star NABERS rating.

Contact

If you want further information on due diligence and capital expenditure forecasts, or any other Napier & Blakeley services please contact any of our offices below:

Melbourne - Rob Howells            03 9915 6300             rhowells@napierblakeley.com
Sydney – Gavin Peach                02 9299 1899              gpeach@napierblakeley.com

Napier & Blakely services:

• Technical Due Diligence
• Capital Expenditure Planning
• Quantity Surveying
• Strategic Asset Management
• Building & Sustainability Consulting
• Property Depreciation

Reduced Life Expectancy and Premature Capex
Recent technical due diligence and condition assessments have also found that the lack of R&M and Capex budgets for economic life driven plant and equipment overhauls and refurbishments has resulted in increased short and medium term Capex.

To put this in context, without appropriate R&M, major plant items may have an economic expected life of (say) 25 years, however the reduction of removal of maintenance can result in a major shortfall in expected life to around 15 years.

The Reaction
Astute purchasers have become aware of this risk and look for these patterns in their technical due diligence reporting to ensure that appropriate Capex costs are factored into the purchase price to account for a vendor’s R&M expenditure shortfalls. 

Condition assessments, maintenance reviews, energy assessments and risk weighted strategic Capex forecasts have become 2010’s essential tools for good asset and facility management and sustainable property solutions. 

Risk of Non-Compliance 
New legislation requires that most commercial office property will be required to have a formal energy performance rating in the next few years and many will require this imminently or in the next few months.  This Legislation has caught most by surprise.  The Building Energy Efficiency Disclosure Act 2010 has just been introduced with transitional provisions (1 November 2010 to 30 October 2011) requiring the disclosure of a building’s energy performance through a NABERS Energy base or whole building rating, for all commercial office property with a net lettable area of 2,000sqm or more that is offered for sale or lease. 

Anxious Vendors
With fines in excess of $100,000 for breaches of the Act’s obligations; including advertising the property for sale or lease, after November 1 2010 without an appropriate NABERS Energy rating, there is significant anxiety in the market place.  The latest information from the Department of Climate Change and Energy Efficiency (DCCEE) will surely increase anxiety levels, as they have confirmed that neither exemptions nor extensions will be granted for lack of knowledge or where assessments are currently underway but not yet completed.

 It will be interesting to see how owners, selling and leasing agents and DCCEE react. 

Astute Purchasers
The story doesn’t end once the rating has been achieved.  Purchasers want to know about the processes and procedures that owners have in place, the potential risks of maintaining the rating at the current level and what plans are in place, or could be implemented, to improve the rating, perhaps strategically in line with planned Capex or future lease expires.

Such initiatives are considered in terms of funding opportunities, reduced energy costs, pay back periods and commercial outcomes. 

Published in the Brisbane Legal Magazine November 25, 2010

………

Using depreciation as a way to encourage the greening of the build environment has been a hot topic for a number of years. During the recent federal election the Labor party announced policies that included the delivery of such incentives.

Last week via their web site Labor provided a little more flesh to their approach in this area.

We outline the salient details below:

• Scheme starts from 1 July 2011 – 30 June 2015.
• Applies to Retro-fits of existing buildings.
• Applicable to buildings 2 Star NABERS rating or lower looking to achieve 4 stars or higher.
• Available for Office buildings, Hotels and Shopping Centres.
• Provides a 50% increase in deductions over the life of eligible assets.
• Anticipated cost $1bn.

How does it work?

• The scheme will run in the same manner as the recent investment allowances scheme.
• From the 1 July 2011 applications will need to be made to the Government for review and approval prior to any works taking place.
• NABERS assessments will be required before the works commence.
• Upon completion of the works 12 months will need to pass to enable a post construction NABERS assessment to be completed.
• Application with results will need to be submitted to the Government for approval.
• Claim for depreciation may be made with approval in that year accounts.
• Depreciation claims that would otherwise be available can be claimed from the date of practical completion.

The Good

• Fairly generous deduction available given the scale of likely expense to achieve a two star rating increase.

The Uncertain

• This is a proposal and not final legislation.
• There is no current indication what assets will be considered eligible for the 50% allowance.
• The $1bn may be capped by the Government so fewer projects may be eligible.
• How the Government will effectively assess applications.
• Likely to take 3 – 4 years before the incentive reaches owners returns.

Napier & Blakeley’s head of sustainability Roger Walker is one of the members of the committee reviewing the assets that will be included within the scheme.

Napier & Blakeley will keep you informed as more information comes to light. In the mean time should you wish to discuss the above article or any other matters relating to Sustainability or Tax Depreciation please does not hesitate to contact us at Napier& Blakeley.

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

……..
Today the Australian government announced that mixed use buildings will be excluded from the CBD legislation for a period of twelve months and major new refurbishments will have a two year exclusion from date of refurbishment.

Following industry consultation the Australian Government Department of Energy Efficiency  and Climate Change set up an industry forum to review the implementation of the Commercial Building Disclosure legislation (mandatory rating legislation).

This group includes Roger Walker, Head of Sustainability at Napier &  Blakeley. We are pleased to advise that Roger’s advice that the legislation should exclude buildings which do not have a minimum of 75% office use has been accepted by the Hon Minister Combet.

The legislation which looks to enable comparison of energy performance of office space will now exclude mixed use buildings, this releases most industrial and retail premises which have an office component over 2,000sqm from the requirements of the legislation for a period of twelve months.

The Department announced today:

” The Government has worked with industry stakeholders to address these complex issues and decided as an interim approach that buildings with less than 75 per cent office space (of the net lettable area 1), will not be required to disclose a NABERS Energy rating. This approach to mixed use buildings is an interim measure during the transition year of the program and will be subject to review by a panel of industry experts. This panel will report back to the Government before the end of July 2011 on their recommendations. Industry will be given clear advice and an appropriate time frame to adapt to any changes, recognising the possible need for metering changes and collection of 12 months data for a NABERS Energy rating.” 

This is a positive move and ensures that the intent of the legislation, to provide comparative ratings for office space, is delivered, with the buildings which are impacted by other uses being excluded.

Whilst parts of the industry would like to see the exclusion as permanent the transition period provides mixed use building owners with a period to review the impact and assess costs to implement metering and other changes to ensure that their office areas can be comparatively assessed against predominately office buildings. Owners in this mixed use category will still need to review their strategy quickly as changes to metering and other areas will take twelve months from implementation to be fully accounted for in a NABERS Energy rating.

Importantly transactions underway and in the pipeline will now be able to move forward without the risk of non compliance or further delay of the transaction for the completion of compliance under the Act. This will alleviate some legal costs and risk reviews for these impacted transactions where the details to obtain a NABERS Rating are not easily met.

To read more information on the legislation and to find out what is needed for NABERS rating please click here to review our earlier update http://napierblakeley.info/sustainability/commercial-building-disclosure-cbd/

Further information on the CBD program, including the amended Determination, is available at www.cbd.gov.au or e-mail Napier & Blakeley for a copy.

Roger Walker, Head of Sustainability at Napier & Blakeley is a representative on the Commercial Building Disclosure Implementation Forum, a representative on the NABERS Stakeholder Advisory Committee, Chairs the ADPIA Sustainability Committee, is a member of the APREA Sustainability Committee, is a registered Valuer and Associate of the Australian Property Institute and works with other industry organisations, business groups and client strategy groups.

Napier & Blakeley can provide you with strategic portfolio planning advice, applications for funding and complete your NABERS ratings for you.

For more info please contact your local office.

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

Napier & Blakeley offer a wide range of consultancy services that will help you deliver  a more efficient and marketable solution for your property. Our services include:

• Energy assessments      
• Sustainable design advice
• Government Funding advice
• Project financing options
• Cost Planning and Life Cycle analysis
• Project Management
• Property Tax profiling

Government Funding & Project Finance

Napier & Blakeley have successfully raised on behalf of its clients over $5 million of green building government funding in the past 18 months alone.  In some cases this was up to 50 % of the actual project cost.  Napier & Blakeley, through an associated party, may also be able to provide project finance for the sustainable property solution if required.

Delivering Extraordinary Projects

Napier & Blakeley can manage the project right through to the completion of the upgrade. Some recent projects where we acted as Project Director include:

North Ryde office building NSW:

• Largest office solar energy plant in Australia
• Emission reduction of 40%

North Sydney office building:

• Target to be the lowest emission building in Australia
• Tri-generation
• 70 % reduction in current emissions
• Upgrade carried out while building fully tenanted.

Tackle rising energy costs

With electricity costs forecast to rise substantially  over the next three years, or even higher if an emissions tax is introduced.

Contact Napier & Blakeley now to see how you can address this issue.
VIC – Rob Howells – 03 9915 6300 or rhowells@napierblakeley.com