Shopping Centre: Value increase £7m

Summary

We recommended a new Energy Architecture for a shopping centre to reduce costs and enhance its valuation. We identified up to £7.4m of enhancements to capitalised value via on-site renewable generation, improved energy efficiency and power exports.

Background

An investment firm owned a UK shopping centre and wanted to position it for an exit, including highlighting the opportunities from on-site renewable generation. They sought our help to understand the right balance between the practical, commercial and financial aspects. 

Solution

We are now refining our proposals with the client, with certain aspects dependent on planning permission and uptake from tenants. We anticipate the final plans involving a roof-top solar installation, wind generation capability, on-site energy storage and upgraded energy control systems.

Outcome

Our proposed changes will enhance net operating income by an estimated £0.6m per year, increasing capitalised value by up to £7.4m and representing an attractive yield on capital invested.