OPERATIONAL PERFORMANCE

Office sector

Over the last few years, DEXUS has had a number of programs in place to capture the baseline performance of our office portfolio, through a comprehensive program known as the Green Building and Resource Management System (GBRMS).

Each property has been benchmarked using the Green Star Office Existing Pilot Tool and NABERS Energy with the results reported along with the current operational aspects of each site and opportunities identified for improvement.

This program provided every property with an easy reference to use in the identification of site specific plans and a number of portfolio wide projects (as illustrated in the diagram above) to deliver sustainability improvements. The opportunity to gain significant improvements in a portfolio wide project is much greater in the office sector as a result of higher tenant expectations, established benchmarking tools like NABERS and the comparability of office buildings.

During the year, we have focused on integrating sustainability into our every day operations, acknowledging that environmental performance is about good design, good engineering and efficient operations. As a result greater focus has been placed on each business unit developing an increased internal capability to deliver sustainability performance aligned with the strategic direction of each property.

We are now developing strategic improvement plans per property, considering tenant demand and the opportunities to deliver significant improvements in the long term value of each property.

The GBRMS project has been effective in identifying a number of opportunities to improve resource efficiency across the office portfolio and has delivered results evident in our reduced resource consumption profiles. For the year ending March 2009 significant improvements have been made compared to the same period last year.

Benchmarking our resource consumption

Measurement and reporting in the office sector is significantly advantaged by having an established benchmarking tool for operational performance. The NABERS series of rating tools provides resource consumption profiles and assists in identifying areas for improvement. NABERS ratings for Energy and Water were undertaken across the office portfolio with the results presented below.

More information on NABERS can be found at www.nabers.com.au

Office Consumption Data

Australian office portfolio ratings

Case Study: Building controls project

In 2008, we engaged a specialist consultant to review and tune-up our Building Management Systems (BMS) in a number of our office properties. In properties where reviews were completed and recommendations implemented in the period, energy savings averaged 12% as at March 2009, with ongoing energy efficiency expected in future reporting periods.
In some sites, the replacement of the BMS was recommended rather than tune-up. Recommendations have been incorporated into a number of strategic improvement plans in our properties.

Case Study:
Development update - 123 Albert Street, Brisbane

123 Albert Street in Brisbane, one of our two major office developments currently underway, will provide a new level of integration between sustainability, amenity and workplace efficiency. The premium grade 31-level office tower, due to complete in December 2010 has been designed to achieve a 6 star Green Star rating and a 5 star NABERS Energy Rating.

Construction of the tower comprises 23 levels of office space, eight levels of car parking (five above ground), with low rise floors of approximately 1,570 square metres and high rise floors up to 1,630 square metres.

Consistent with our approach to secure significant tenant pre-commitment in our developments, 65% of the total net lettable area has been pre-committed to anchor tenant Rio Tinto, with a fully tailored, integrated fit-out underway.

Instrumental in securing Rio Tinto were the environmentally sustainable design features, which include the use of high-performance glass compounds backed by strategically placed solar reflectors to reduce heat and glare, while optimising the use of sunlight. The ceilings are chamfered at the perimeter to increase light penetration and a laser cut glass panel reflects light up into the core of the building.

Chilled beam cooling technologies are being incorporated to increase energy efficiency in the building. Another feature is the use of low volatile organic compounds (VOC) products to enhance the air quality and create a healthier environment for tenants. Finally, water technologies will include rainwater recycling, augmented by carefully located rainwater tanks around the building.

Case Study: Southgate complex, Melbourne, VIC

The Southgate complex is a Melbourne icon incorporating two office towers and a retail and dining complex located on the banks of the Yarra River overlooking the Melbourne CBD. Over the past 18 months, a number of sustainability improvements have been incorporated in the IBM tower leading to significant reductions in energy consumption of 16% compared to the same period last year. These initiatives include:

• Perimeter light nn sensors on each of the refurbished floors to optimise the use of natural light.
• Modification of the air delivery systems for greater efficiency.
• The rebalance of chilled and hot water systems to remove excessive flows
• Introduction of CO2 control allowing reduced outside air flows in winter and summer (during low occupancy)
• Active management of floor Variable Air Volume (VAV) heaters, chillers and boilers to more effectively align with ambient conditions and tenant needs
• Installation of sub-metering on main power supplies and energy monitoring software

Other sustainability initiatives include the use of low volatile organic compounds paint, fully recyclable carpet tiles and flow restrictors in all common area toilets and dual flush toilets and low flow urinals in the refurbished bathrooms. The IBM tower has significantly reduced consumption as demonstrated in the below graphs.

In the coming year, the HWT tower will be upgraded using the same template as the IBM tower. Initial works will include:

• An upgrade of the Building Management System
• Installation of variable speed drives on chill and condenser water pumps
• Installation of variable speed drives on car park supply and exhaust fans
• An upgrade of the control system (BMS) for the retail complex

Both towers are currently rated 3.5 stars for NABERS Energy (the HWT tower has significantly longer operating hours which partially accounts for their higher rating). These ratings are expected to improve as the full benefit of the energy savings initiatives are realised over the coming year.

Case Study: 1 Bligh Street - Holistic Sustainability in Action

"The superior design and contemporary sustainability features, together with the benefits offered to the community and economy as a whole, demonstrate our commitment to leading the way in sustainable development in every sense."
DEXUS Chief Executive Officer, Victor Hoog Antink

1 Bligh Street is designed to be the next generation of office accommodation in Australia. The development is owned in partnership between DEXUS Property Group, the DEXUS Wholesale Property Fund (DWPF) and Cbus Property. A unique example of leading edge sustainable design and architecture – a vision shared by all partners on the development – 1 Bligh Street demonstrates our holistic approach to corporate responsibility and sustainability.

The unique design elements of 1 Bligh will deliver benefits in environmental performance, superior workspace quality, community engagement and job creation with up to 3,000 jobs during the construction of the building.

In May 2009 an important milestone was reached in the development timeline, with the commencement of construction of the tower.

The transparent, elliptical shaped premium grade office building is being constructed on the corner of Bligh, Bent and O’Connell Streets, in the heart of Sydney’s financial district and will have a profound impact on the CBD skyline.

Designed to achieve a world’s best practice 6 star Green Star rating and a 5 star NABERS Energy rating, the key sustainability feature is the fully glazed high rise double-skin façade. This will be a first in Australia and is designed to maximise the views to Sydney Harbour and provide access to natural light, as well as optimising resource consumption. It comprises two layers of glass – an outer glass skin separated by a large ventilated cavity from an inner double glazed skin.

Other sustainability features include black water recycling for the bathroom flushing systems and recycled rain water for irrigation. An innovative tri-generation system will use gas to generate energy for the building’s cooling, heating and electricity. Roof-mounted tubular energy collectors will produce heat for electricity.

Leading the way in environmental sustainability and community value

“We aim to deliver a building which sets a new standard for sustainable architecture... our desire is to create a visible community – a public space, which people can use as a resource.”
Christoph Ingenhoven, Lead Architect, Ingenhoven Architectus

A full building height atrium and ceilings of 2.85 metres provide an enhanced experience for tenants and visitors alike, with quality access to daylight, fresh air and dynamic views throughout the building. Glass elevators positioned in the core of the atrium will further add to the experience.

Creating a visible community through superior workspace design

“The environmental features of the building and the design quality will create a whole new way of working for our staff and our partners – it’s very exciting for our firm.”
David Fagan, National Managing Partner, Clayton Utz

In addition, the innovative design offers tenants full flexibility in terms of maximising floor space and workspace quality, with large floor plates of approximately 1,600 square metres and the absence of perimeter columns to further enhance the transparency of the façade. The development also incorporates a large, sun-filled forecourt and entry hall, accessible to the public during working hours.

At a time when many developers have suspended major construction activity due to the challenging economic conditions, DEXUS has continued with the development of 1 Bligh Street. In partnering with Cbus Property in January 2009, we have reduced our development costs by 33% and further de-risked the project by securing anchor tenant Clayton Utz, Australia’s oldest legal firm, who signed as anchor tenant in October 2008 to occupy 55% of the 42,000 net lettable area.

Investing for the future

“Aiming for a 6 star Green Star rating, this building will light the way for future developments in Sydney, helping us position our City as a green leader in the highly competitive world market. It’s going to be a building that is quite inspiring to be in... it is about the future.”
Clover Moore MP, Lord Mayor of Sydney