our activities on sustainable properties november 11 th, 2013 masato ito real estate advisory...

Our Activities on Sustainable Properties

November 11th, 2013Masato ItoReal Estate Advisory DepartmentSumitomo Mitsui Trust Bank, LimitedA Member of UNEP FI Property Working Group

審査済 2013- ひな形 -024

2SUMITOMO MITSUI TRUST BANK, LIMITED

New approaches to promote sustainable properties(1)- Showing the way to increased net income

Cash E

xpenses

Net income

Other

Utilities

Leasing &Mgt

Maintenance

Gro

ss Inco

me

Taxes &Insurance

Added value

Net Income

Other

Utilities

Leasing &Mgt

Maintenance

Taxes &Insurance

Decreasesby

Energy Saving

Decreasesby

Improvement ofDurability

Net IncomeIncreases

If the total income

increases by quality

improvement, carbon credit..

…

“A note on environmental value added for real estate” (Masato Ito) On the occasion tenth anniversary commemorative article for Tokyo Association of Real Estate Appraisers, 2005

Conventional

Properties

Greener

Properties


New approaches to promote sustainable properties(2)- Showing the way to reduced risks

Marketability

environmental

Capita

lizatio

n ra

te

Risk FreeRate

Added value

Environmental

depreciation

DepreciationRisk

pre

miu

m

marketability

Other

Risk FreeRate

When Durability of a building

increases

Green Real Estate may not be affected by future taxation ,regulations and carbon credits thanks to its environmentally-friendly nature.

“Image Improvement Effect” thanks to its environmentally-friendly nature.

“A note on environmental value added for real estate”(Masato Ito)On the occasion tenth anniversary commemorative article for Tokyo Association of Real Estate Appraisers, 2005

Other

Conventional

Properties

Greener

Properties

CapitalizationRate

Reduces


•Creating simple, comparable, compatible system• Covering common metrics

• Connecting to property appraisal•Coexisting of “For DfE” version and “For Investors” version

Rating Systems in the World (e.g. BREEAM, LEED, Green

Star…)

CommonMetrics6 itemsCurrent CASBEE

approx. 110 items

1/10/2010 Masato Ito

Image of very simple version of CASBEE

10-20 items

New approaches to promote sustainable properties (3)- Towards launching a very simple version of CASBEE


New approaches to promote sustainable properties (4)- Simplifying environmental metrics to inform

•Creating Simple, Comparable and Compatible Systems

•Sharing worldwide “Common Metrics”

• Including each country’s particular items

Underlined items: prerequisite itemsMarked items: Items of UNEP SB Index(draft)

Energy consumption/GHG emissions

Target setting and monitoring, Energy Intensity/Carbon Intensity(calculated), Energy Intensity/Carbon Intensity(measured), Renewable Energy

Water Target setting and Monitoring, Water Intensity(calculated), Water Intensity(measured)

Material/Safety

Earthquake-resistance, Exceeds of Earthquake-resistance, Seismic Isolation & Vibration, Damping systems, Recycled Materials Use, Service Life of Structure material, Ease of MEP Renewal, Increase Self-sufficiency Rate of Power

Biodiversity/Site

Avoiding from immigrant Fauna & Flora, Preservation & Creation of Biodiversity, Soil Environmental Quality/Regenaration of Brown Field, Public transportation access, Measures to Risk of Natural Disaster

Indoor Environment

Indoor Environment Standard of buildings, Daylighting, Natural Ventilation, Access to view


In Japan CASBEE is beginning to discuss with market participants a short form version of CASBEE metric (the CASBEE for Market Promotion tool.) In the US and Europe, LEED and BREEAM are also beginning to roll out ‘short-form’ versions of their better known measurement schemes, for existing stock.

New approaches to promote greener buildings(5)- Investors require such concise systems

This study argues that environmental property metrics users and suppliers must bridge the gap that separates them to successfully measure the environmental performance of property portfolios and related improvement activities.

For Reference – Correlation Between Rents and CASBEE Scores

Scores (CASBEE for Market Promotion)

Rents (Compared to

Market Average)

7

38 buildings got the first certification of CASBEE for Market Promotion 8 of them owned by J-REIT.


Our effort to promote sustainable properties(1)Providing Housing Loans for Environmentally Friendly Houses

1. Preferential rate housing loan which is based on the “CASBEE Kawasaki”.

2. Preferential interest rate loans for the purchase of environmentally friendly houses with built-in solar power generation systems.


Our effort to promote sustainable properties(2)

• Sumitomo Mitsui Trust Bank’s Environmental Rating Loanoffers preferential interest rates for companies promoting initiatives such as Environmentally friendly property.

CSR Report 2011 The Sumitomo Mitsui Trust Group


Our effort to promote sustainable properties(3) Sumitomo Mitsui Trust Bank’s Architecture Consulting -TOYO SEIKAN KAISHA Osaki Forest Building

Subsidized as a Project for installation of advanced CO2 reduction facilities and systems.

Creating a wide area of “Urban Forest” which is available not only for CO2 reduction by cooling the site but also preservation of biodiversity, adopting Japan Habitat Evaluation and Certification Program, JHEP.

Aiming to increase value of building and company, through environmental friendliness.

Toyo Seikan Kaisha, Ltd.’s new HQ building (conceptual drawing)Provided by Takenaka Corporation


Our effort to promote sustainable properties(4) Developing indices and preferential loans

-Fujisawa Sustainable Smart Town① Aiming to realize Panasonic‘s

concept of a safe, secure and sustainable smart town.

Aiming to reduce CO2 emissions by 70%(vs. 1990).

Sumitomo Mitsui Trust Bank is planning to offer preferential rate loans for environmentally-friendly houses.

Sumitomo Mitsui Trust Bank is developing real estate assessment indices that facilitate market acceptance of environmentally-friendly urban development as real estate value.

( News Release by Panasonic Corporation, October 1, 2012)

Central ParkCentral Park

Daily life supporting facilities 1




Housing Complex

Zone

Housing Complex

Zone

AdvancedActivity

Zone

AdvancedActivity

ZoneWelfareHealthcare

Education Zone

WelfareHealthcare

Education ZoneDetached

House Zone

Detached House Zone

Detached House Zone

Detached House Zone

Location Kanagawa prefecture, Fujisawa city

計画概要

Area Approx 19ha

Buildings Homes/Businesses/Public facilities

Population Approx 3,000

Schedule Town opening in Spring 2014

Budget Approx 750 Mil USD (\80)


Our effort to promote sustainable properties(5) Developing indices and preferential loans

-Fujisawa Sustainable Smart Town② Developing real estate assessment indices that facilitate market

acceptance of environmentally-friendly urban development as real estate value.

Goals of Environmental 　 Measurements to Achieve 　　 Economic Effects andFriendliness the Goals Environmental Added ValueEnvironmental Targets

70% Reduction of CO2 Emission

30% Reduction of Water Consumption

Energy TargetsOver 30% of Renewable Energy Utilization Rate

Safety/Security Targets3 days of Lifeline

Maintainance

“Wind Paths”, “Green Axis”

Car sharing

Security Cameras

Energy Creation, Storage, and Management

Smart Energy Gateway

Service Model for a Next-generation Lifestyle

Community Platform

……….

Utility Cost Reduction

Management Cost Reduction

Cost Reduction for Cars

Improved Safety and Security

Disaster/Blackout Risk Reduction

Gaining “Eco-points”

Preferential Rate Loan for Houses

………

Image of real estate assessment indices


Disclaimer

This material is for informational purposes only, and are not intended to invite, solicit, mediate, broker, or sale products including real estate and financial instruments, services, rights or other transactions. Please use your own judgment when making final determinations on securities selection, investment decisions or use of this document. Furthermore, please consult with lawyers, tax advisors, public accountants or relevant parties, with regard to legal, tax, accounting or other issues. Although this material is prepared based on information which SMTB considers reliable, SMTB cannot be held responsible for their accuracy or completeness. In addition, as this document was prepared based on the information available at the time of preparation or research, all contents provided herein represent the judgments at the time at which the material was prepared. Forecasts, projections, or estimations included in this document are neither assured nor guaranteed. The contents of this document are subject to change without prior notice. All rights related to this document are reserved by SMTB. Copying, reproduction or revision of this document, in whole or in part, is not permitted without the prior consent of SMTB, irrespective of the purpose or method.

our activities on sustainable properties november 11 th, 2013 masato ito real estate advisory...

Documents