Tuesday, September 10, 2013

Singapore Needs More Funds to Build Green Towers: Southeast Asia

Singapore’s building regulator is

seeking more funds to support landlords who upgrade systems used

to power and cool structures, which account for a third of the

nation’s electricity consumption.


The Building and Construction Authority wants more money

after exhausting S$100 million ($78 million) allotted in 2009 to

help property owners make their developments more

environmentally friendly, Chief Executive Officer John Keung

said. It needs the funds to offer incentives and programs to

help owners of older properties upgrade, he said.


“New buildings isn’t a problem, our bigger challenge is

existing building because retrofitting can disrupt existing

operations,” he said in an interview in Singapore. “So we are

helping fund part of the retrofitting to get them to go green.”


Singapore is aiming to have 80 percent of its properties

meet its green standards by 2030 as buildings make up a fifth of

its land area, a city-state that’s smaller than the size of New

York
City. The authority said a recent study of 36 commercial

properties that upgraded cooling systems showed energy

consumption fell 16 percent.


The government agency is using the funds to match expenses

by landlords for upgrading their facilities to meet green

standards
, capping the grant at S$3 million, Keung said. The

authority will also help fund an energy audit to track the

efficiency of the air-conditioning plants. Only 21 percent of

the city’s buildings meet its green standards now, it said.


Green Standard


Singapore’s property owners made 1,650 buildings

environmentally friendly since 2005 when the authority

introduced the green standard, Keung said. The additional cost

for a new property to meet its certification would raise

expenses by as much as 5 percent, which could be recovered

through energy savings in 2 1/2 years to 6 1/2 years, he said.


The city’s floor area per capita for green buildings, or

the amount of space in those properties compared with the number

of occupants, was 8.7 square meters (93.6 square feet) last

year, according to data from the authority. In California’s four

biggest cities including Los Angeles and San Francisco, the

ratio was 3.8 square meters, according to data from U.S. Green

Building Council.


California was ranked first in the U.S. with 6,438

commercial buildings meeting the widely used Leadership Energy

and Environmental Design, or LEED standards.


Energy Emphasis


The Singapore regulator studied the major green rating

systems in the U.K., Australia and the U.S. and adapted to suit

local conditions, it said. Unlike LEED, the Singapore

certification places more emphasis on energy efficiency, the

authority said.


To push developers to add more environmentally-friendly

aspects to properties, the government stipulated in land sales

that developers bidding for sites in the business districts will

have to meet its highest green standards, Keung said.


The payback period for office buildings to meet the

standards varies from four to eight years, with no financial

returns for adding green features in residential developments,

according to Tan Swee Yiow, president of Singapore operations at
Keppel Land Ltd., the property developer partly owned by the

world’s largest builder of oil rigs.


“As environmental issues dominate global agendas,

businesses today recognize that going green is no longer an

option, but a necessity,” Tan said in an e-mailed response.


Tenant Attraction


Keppel Land (KPLD) and its partners have invested almost S$90

million on residential and commercial projects in Singapore and

overseas to make them environmentally friendly, Tan said.


CapitaLand Ltd. (CAPL), Southeast Asia’s biggest developer, aims

to exceed the regulator’s requirements, Francis Wong Hooe Wai,

chairman at the company’s green committee, said in an e-mailed

response to queries. Twenty three of its 29 shopping malls and

office buildings have achieved at least the minimum green

standards set by the regulator, he said.


“Green buildings are naturally more attractive to

tenants,” Wong said.


Six Battery Road, which is owned by its property trust
CapitaCommercial Trust (CCT), was renovated for S$92 million, of which

about 3.7 percent was set aside to achieve the green rating, he

said. The return on the building in the city’s financial

district is estimated at 4.7 years, he said.


The government will allow developers to build more space to

incentivize them to construct green properties, Keung said. It

also plans to train 20,000 people to design, build and maintain

these projects by 2030, from 6,000 currently, he said.


“Last year, a new legislation was passed that requires all

existing buildings will need to meet the minimum green standards

whenever they upgrade their cooling systems,” Keung said. “So

it’s a matter of time that all buildings will have to become

green as they start upgrading their systems.”



Singapore Needs More Funds to Build Green Towers: Southeast Asia

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