Passivhaus. A View From Grosvenor. Mike Levey

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1 Passivhaus A View From Grosvenor Mike Levey

2 About Grosvenor Grosvenor is a privately owned property group, active in some of the world s most dynamic cities 17 offices in 11 countries Assets in 16 countries Group total assets under management of circa 11.8bn.

3 Grosvenor s London Estate Long history of stewardship having been custodians of our estate in Mayfair and Belgravia for over 300 years 300 acres 90% within Conservation Areas 5,000 properties 1,100 of which Listed Page 3

4 The Challenge 40% of the world s emissions from buildings 80% CO² reduction by % of existing UK buildings will exist in 2050 To meet our targets, we must retrofit Page 4

5 Our Energy Goals Reduce Carbon by 50% from Directly Managed by 2023 & 50% from all properties by % properties compliant with Energy Act Improve the wellbeing of occupiers. Can not rest on our laurels Page 5

6 The Role of Passivhaus Of units we retrofit each year 2% will be to EnerPhit Passivhaus Standard. This will Help us achieve 50% reduction target by countering hard to treat properties Provide valuable research & development Train & upskill our delivery teams Promote our Private Rented Portfolio as best in class Set the standard for others to follow Motivate delivery teams by providing clear target level of performance Page 6

7 EnerPhit Passivhaus First in Private Rented Sector Project Details Address: 11 &19 Passmore Street, London SW1W Project value: circa 400K Project size: 811 sq ft Status: Completed & let Completion Date: February 2015 Project team Client & Developer: Grosvenor Britain & Ireland Architect & Passivhaus designer: Sturgis Carbon Profiling PH Certifier: Co-Create CA / QS: Thompson Cole Structural engineer: Hurst Peirce & Malcolm M&E: Edward Pearce & Partners Project manager: Mike Levey - Grosvenor Contractor: Grangewood Page 7

8 EnerPhit Passivhaus Second in Private Rented Sector Project Details Address: 13 Adams Row, London W1 Project value: circa 400K Project size: 1250 sq ft Status: Completed & let Completion Date: May 2015 Project team Client & Developer: Grosvenor Britain & Ireland CA / QS: Thompson Cole Architect & Phaus designer: Sturgis Carbon Profiling Structural engineer: Hurst, Peirce & Malcolm M&E: Contractors design Project manager: Mike Levey - Grosvenor Contractor: Gaysha Ltd PH Certifier: Co-Create Page 8

9 Building Challenges - Lessons Learnt Need to have team built on trust & collaboration Experience & training Don t loose sight of architectural design Allow for airtightness champion Main contractor & all subcontractor s to attend Passivhaus training Careful sequencing of works required Protect vulnerable areas of membrane Never loose sight of the bigger picture airtightness & relative humidity Page 9

10 Market Reaction Problem: Market doesn t think long term or understand benefits of Passivhaus Occupiers - MORI Survey 32% willing to pay more for sound insulation but only 18% willing to pay more for property with lower carbon emissions Letting Agents don t see any evidence of demand for Passivhaus so do not directly reflect full benefits in rental value Page 10

11 Market Reaction Problem: Market doesn t think long term or understand benefits of Passivhaus Occupiers - MORI Survey 32% willing to pay more for sound insulation but only 18% willing to pay more for property with lower carbon emissions Letting Agents don t see any evidence of demand for Passivhaus so do not directly reflect full benefits in rental value Our Approach: marketing promoted health & comfort benefits not just energy saving. Use occupier s anecdotal evidence for future marketing and educate agents. Equivalent to new-build standards but within attractive period building Quietness, 80db to 35db - %reduction in noise levels Clean air (80% large dust particles removed) Low energy bills (up to 80% less) Comfort from lack of drafts Ambient temperature never below 17 degrees. External wall temperature never lower than 12 degrees Page 11

12 Up Scaling Passivhaus The Business Case Reduce Costs Increase Income Engage Delivery team Invest in R&D Capture long term maintenance savings Reduce energy demand Max income from renewables Appraise over long term Stimulate & track demand Page 12

13 Page 13 Mike Levey