76 | NZGBC: Argosy Property Significant savings from LED systems The five Green Star office building in the Argosy portfolio at 82 Wyndham Street enjoyed a post project lift of 25% in gross rentals and a 25% reduction in energy. from page 74 BUILDING “This philosophy is good for the environment and good for the occupants as it provides a productive work environment.” ants, air conditioning systems with multiple zones providing greater comfort and installing intelligent LED lighting systems in its buildings with features such as dimming in brighter daylight to reduce energy usage and occupancy controls. A comprehensive warehouse LED lighting system incorporated these features in one of Argosy’s large industrial properties in Auckland and Nathan says the energy savings were significant. This highlights a key win-win for the tenant and Argosy to go green, he says. “This philosophy is good for the environment and good for the occupants as it provides a productive work environment. It is cost effective and the financial returns on these projects really stack up by lowering operating costs and increasing net rentals as well as making buildings more leasable reducing vacancy. This all adds up to a higher value property.” As an example a five Green Star office building in the Argosy portfolio at 82 Wyndham Street enjoyed a post project lift of 25% in gross rentals and a 25% reduction in energy. Argosy received an 11% development margin on this project and an 8.3% internal rate of return. It was also New Zealand’s first building to be operating carbon zero under a new Toitū Envirocare certification for which it was the pilot. Saatyesh says that this reflects the fact it is not just the physical building that needs to be sustainably built but also the way it is operated and managed long-term. The certification also allows existing buildings to benefit from a recognised certification. Argosy is also Net Carbon Zero certified as a company by Toitū Envirocare. Saatyesh says that Argosy collects emissions data within its operational boundary to achieve the certification, which is audited annually. As part of Argosy’s commitment, it has an emissions reduction plan including a goal of 30% emission reductions by the year 2030. Nathan says that by taking a proactive approach and staying ahead of the game Argosy is also successfully mitigating risk across its portfolio as sustainable buildings – built to a higher standard than the Building Code – are more resilient to legislative change. Argosy is one of New Zealand’s leading listed property companies, owning a diversified portfolio of industrial, office and retail properties predominantly In Auckland and Wellington. The portfolio is valued at more than $2.2 billion with 629,000 square metres of lettable space. Listed on the NZX Argosy is a top 50 entity by market capitalisation and currently has over 8,700 shareholders. Saatyesh says that Argosy’s focus on sustainably flow from the top down and it was notably the first listed property vehicle to have an environmental social and governance committee at the board level. Furthermore, in 2019 Argosy was the first listed property company to issue green bonds ($100m), which reinforced its position as a market leader in the sustainability space. Argosy completed a further two issuances and now has $325m of green bonds. “Sustainability is part of our DNA and one of the founding blocks of our strategic plan that filters through the organisation,” he says. “It’s about doing the right thing,” adds Nathan. “Organisations need to take a step back and do what’s right. It’s as simple as that.” DESIGN TESTED MANUFACTURED Member 2022-2023
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