New green rating tools to boost value of old buildings

Tuesday, April 27, 2010


New green rating tools to boost value of old buildings


KUALA LUMPUR: The Green Building Index (GBI) Non-Residential Existing Building (NREB) rating system for older buildings will enhance their value and attract investors, said Malaysia Green Building Confederation president Von Kok Leong.

“Today, more people are looking for buildings that are more energy efficient and sustainable. Such buildings fetch better rentals and are more likely to attract investors,” he told StarBiz on the sidelines of the GBI NREB launch by Energy, Green Technology and Water Minister Datuk Seri Peter Chin yesterday.

Von said it was also more cost effective to upgrade an old building than to demolish it and build a new one for want of a more environmental-friendly structure.

“You’re giving new life to old buildings. Other than investors, even developers are looking for buildings that they can upgrade instead of building from the ground up. It’s cheaper.”

In his welcome address, the chairman of GBI Accreditation panel and Malaysian Institute of Architects president Boon Che Wee said the GBI NREB would give existing buildings a new lease of life and appeal.

“The new rating is timely for existing property owners to re-condition and ‘future-proof’ to meet 21st century environmental performance standards and remain competitive in the long term.

“This, together with the lower operational and maintenance costs that come with the new environmental credential, will undoubtedly lead to progressive appreciation in rental and asset value,” he said.

According to Boon, existing buildings and its communities contribute over 40% of green house gases to the environment.

“Retro-greening will be the new stimulus of our green economy and a new economic multiplier of our construction and property industry,” he said.

Under the GBI NREB, existing non-residential buildings are rated based on six criteria – energy efficiency; indoor environment quality; sustainable site planning and management; material and resources; water efficiency and innovation.

The highest emphasis is on energy efficiency and indoor environment quality (accounting for a maximum of 38 and 21 points respectively out of 100) to address energy use and well-being and productivity of the users of the building.

Points are given for water efficiency and innovation to encourage such improvements and modifications.

Facility management is introduced for sustainable site planning and management, and material and resources to reflect the need for environmental protection in the use of chemicals, pesticides and procurement policy.

By The Star