Amdec assesses cost and opportunities for green building technologies in property development

Posted On Friday, 12 October 2007 02:00 Published by
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When it comes to our environment the truth, as former US Vice President Al Gore aptly points out, is inconvenient

Amdec Property Development’s Cape Regional Director, Magnus McDowall, points out that the construction and development industry has historically been seen as a negative influence on the environment.

There is, however an increasing acceptance of this amongst the more established and responsible development companies in South Africa. In part this is because green development is globally topical at the moment. In South Africa it has been given added prevalence with the recent formation of SAPOA’s Green Building Council, creating an awareness of how planning, design and the construction of buildings, neighbourhoods and cities contribute to the carbon footprint. Ongoing facilities and property management play a big role in this too.

“Whilst Amdec has always sought to be sensitive to such issues, these recent developments have really given Amdec cause to evaluate its properties and future developments in terms of ‘green standards’. Where feasible Amdec will apply green building principles to future developments,” says McDowall.

Amdec, as one of the foremost developers of mixed-use property in South Africa, including Johannesburg’s landmark Melrose Arch, already has an edge on other local property development companies. New urban, mixed-use developments use less energy due to reduced vehicle trip generation, leverage off existing bulk infrastructure and reduce urban sprawl – these factors contribute to significant wide-scale environmental benefits.

At one of Amdec’s recent internal conferences, green building technologies was a key topic and the company is now employing consultants to transform green principles into action. With some 20 upcoming development projects and a portfolio of R4,5 billion in property assets, Amdec is confident that it can make a difference.

McDowall stresses that, in addition to embracing infill development, densification and development of more mixed-use precincts, all of which encourage regeneration of urban life close to public transport and existing resources, it is incumbent on the property industry to embrace and implement green building technologies in specific projects.

Examples of easily implemented technologies include low flow taps/showers, water recycling, efficient building insulation, solar heating panels and low energy lighting. On larger developments more efficient precinct wide chilled water plants and alternative energy sources are feasible – in fact Amdec is presently investigating large scale alternative energy technologies for Melrose Arch.

“Depending on the technologies used and the type of project, we expect increases in capital costs of between 2,5% and 10%. However, it is proven in both Europe and Australia where these technologies are increasingly embraced, that operating expenses can be significantly reduced and these additional capital costs will be recouped over time. Commercial properties by their nature are long-term investments in any event,” says McDowall.

It is encouraging to note that property owners and investors in South Africa are starting to respond to the call for environmentally responsible property development, as well as property and facilities management. A simple starting point is introducing waste recycling, as Amdec has done in all the properties it owns and manages.

Proactively taking action when it comes to green building will position property owners and investors to meet imminent pressure from tenants “Already, in Australia, government departments demand that buildings achieve a certain green building rating. International companies are also beginning to adopt similar standards and this will become more prevalent over time. Proactive property developers will need to pre-empt this,” cautions McDowall.

Amdec is a leading property development, investment and project management specialist currently managing property developments with a market value in excess of R4,5 billion. Amdec was founded in 1989 by father and son team of civil engineer John Wilson and chartered accountant James Wilson. It is active in all sectors of property development with landmark developments in both Gauteng and the Western Cape.


Publisher: Amdec
Source: Amdec

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