green finance for slideshare
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This is a partial presentation our in depth green real estate finance and investment seminars for sustainability professionals. Galley Eco Capital has pioneered financial services to real estate developers, investors and sustainability practice leaders on green real estate finance best practices that boost returns.TRANSCRIPT
The best deal for investors, communities and the planet.
Green Finance for Commercial Real Estate
Green Finance for Commercial Real Estate
Stay ahead of the curve with new tools and underwriting standards.
Boost your ROI on capital investments.
Stay ahead of the curve with new tools and underwriting standards.
Boost your ROI on capital investments.
29 February 2009 Green Finance Presentation
Where we’re headed today…
Analytical Tools & Standards
The Green Capital System
LCCA
Simple PaybackNPVIRR
UnderwritingStandards
RPI
Underwriting Factors
Green Equity
Economic,Environmental & Social Outcomes
Green Debt (?)
Financial Incentives
Green Leases
39 February 2009 Green Finance Presentation
Real Estate FinanceReal Estate Financeused to seem so simple…used to seem so simple…
49 February 2009 Green Finance Presentation
CHILLER
Cap That!True Story
– 265,000 sf office– $200,000 from PG&E – $0.50 /SF savings p.a.– $1.3 mm over ten years– $2.2m value increase
59 February 2009 Green Finance Presentation
About Galley Eco Capital
Transaction Size
• Real Estate $20mm+ / Solar & Wind = 1MW+
Objective
• Connect full range of financial products / benefits for green projects. Business intelligence, structuring, financial modeling and due diligence expertise.
Sectors • Sustainable Real Estate & Renewable Energy
Location • Nationwide
Structures• Entity-level Investment Programs, Hybrid
Debt/Equity Structures, Energy-Savings Financing Structures.
Current Pipeline • $200mm
69 February 2009 Green Finance Presentation
Example: Shiloh Sustainable Village
• Sponsored by North Street Partners: Town of Windsor, Sonoma County.
• Net Zero Energy + Carbon Neutral Urban infill mixed use. 1. Passive design. 2. Solar energy. 3. Carbon credits.
• LEED-ND & LEED CS development. $62mm project value.
• Competitive Occupancy Costs = Competitive Investment: 1. Zero electricity for residential tenants; 10% lower electricity costs
for retail. 2. Designed in Hedge against Energy & Water Price Risk.
79 February 2009 Green Finance Presentation
2030 Challenge
Every year we:
• Tear down ~ 1.75 Bn sf.
• Renovate ~ 5 Bn sf.
• Build new ~ 5 Bn sf.
US building stock = 300 Bn sf.
89 February 2009 Green Finance Presentation
2030 Challenge
By 2035, nearly 75% of the built environment will be new or renovated.
www.2030challenge.com
The next 30 years offers a historic opportunity for:
communities to avoid dangerous climate change.
•architecture •building •AND FINANCE
99 February 2009 Green Finance Presentation
A system of public and private market financial mechanisms that promote sustainable real
estate.
Rewards Resource
Value
Integrative
Intentional
Green Finance:
109 February 2009 Green Finance Presentation
Tools
119 February 2009 Green Finance Presentation
No more “Compartment of Finance”
Think: ‘Sustainability Operating
System’ An interrelated system of processes that use
sustainability to achieve economic, environmental and social outcomes.
* Managing your cost of capital is a key part of this system.
129 February 2009 Green Finance Presentation
Green Real Estate Finance & Investment Experts
Lisa Michelle Galley, Managing PrincipalGalley Eco Capital, LLC71 Stevenson Street, Suite 400San Francisco, CA 94105(415) [email protected]
• Project/Portfolio Consulting• Incentives/Cost Segregation
• Green Finance Education• Recommended Reading