TÜV SÜD unlocks potential areas of sustainability for real property
TÜV SÜD unlocks potential areas of sustainability for real property
TÜV SÜD has added an integrated evaluation and certification service for the real estate sector to its consulting and services portfolio. At Expo Real on 5 October 2009, TÜV SÜD will award its new SCoRE Certificate for administrative premises owned by financial services provider KGAL. Other products and services presented by TÜV SÜD will include innovative market reports featuring reliable market data on German metropolitan centres, comprehensive due diligence services, quality control services during construction, legally binding building acceptance for jointly owned property, and certification for energy-efficient lifts. (Hall C1, Stand 121 and Hall A1, Stand 430).
Building contractors and investors who already rely on technical and economic sustainability today may emerge as winners from the economic crisis. "We are observing a growing demand for new sustainability concepts designed to secure investments and reduce life-cycle costs", states Holger Busch, head of Real Estate Valuation at TÜV SÜD Industrie Service and CEO of TÜV SÜD ImmoWert.
TÜV SÜD presents the new sustainability certificate SCoRE
The core issue of exactly what determines sustainability in a property is answered by TÜV SÜD with respect to existing office and administrative premises by the new TÜV SÜD SCoRE (Sustainability Certification of Real Estate). At Expo Real 2009, TÜV SÜD will introduce the criteria and certification process applied in TÜV SÜD SCoRE, taking initial pilot applications involving the administrative premises of financial services provider KGAL as an example. "The new certificate is our effective tool for evaluating and increasing the sustainability of existing buildings. It is designed for the property sector against the backdrop of Germany's reigning high building standards", explains Ferdinand Neuwieser, Managing Director of TÜV SÜD Industrie Service GmbH.
A special feature of TÜV SÜD SCoRE compared with other evaluation systems is its examination of potential areas of sustainability which offer room for improvement and which are economically feasible; the certificate thus provides a system of comparison for real estate in Germany.
Innovative market reports assessing the situation on real estate markets
New independent market reports developed by TÜV SÜD ImmoWert increase the reliability of market data for residential properties. "Transparent, reliable information is a key prerequisite for sustainable business“, declares Holger Busch. Thanks to TÜV SÜD ImmoWert's extensive network of qualified in-house experts and its database containing over four million individual properties, the company is able to produce in-depth market analyses which initially cover 23 economic regions in Germany. A special feature is the TÜV SÜD ImmoWert-designed property market ranking of the market values of residential properties and buildings in Germany's 428 council districts, based on nationwide analyses of average prices. A further special feature is the calculation of the relative strength of residential property markets for individual council districts, incorporating evaluations of the economic and demographic factors of unemployment rates, purchasing power, population development, population forecast and age-group structure.
Comprehensive Due Diligence services identify investment risks
In the wake of new laws governing sustainability standards, legal requirements concerning existing and new buildings have become increasingly rigorous in recent years. An example of this is Germany's new Energy Savings Regulation (from October: EnEV 2009), the Renewable Energies Heat Act (EEWärmeG) and the Environmental Damage Act (USchadG). Future prospects of refurbishment expenses and valuation reductions impair the marketability and rentability of many properties when compared to sustainable buildings in similar locations. As a result, due diligence inspections are growing in importance in property transactions, as a method of identifying investment risks and areas of valuation potential. Due diligence services comprise Real Estate Due Diligence, Environmental Due Diligence and Property, Plant and Equipment (PP&E). They adopt an integrated approach to properties, their environmental factors and technical installations. Demand for TÜV SÜD due diligence services comes from buyers and sellers of real estate and portfolios, but also from property managers when, for example, reserves for maintenance of a property are being reviewed. In addition, the TÜV SÜD SCoRE evaluation system can also be integrated as a component addressing specific issues raised by a due diligence inspection.
Quality Control During Construction – ensuring compliant planning and orderly execution
As standards of sustainability grow more rigorous, the complexity of construction projects likewise keeps pace." Damage caused by building faults accounts for costs of around 1.4 billion euros every year. In some cases, the expense of repairing the damage may make up around two per cent of the total building costs“, reports Herbert Gottschalk, Head of Building Technology at TÜV SÜD Industrie Service.
In TÜV SÜD's Quality Control During Construction service, the planned construction is examined by experts who conduct multiple inspections of potential areas of weakness in structural elements or their connecting points such as sealing joints, windows, insulation composite systems, vapour barriers and installations, to ensure that the building keeps its promise of sustainability and legal certainty is assured.
Legally binding building acceptance for jointly owned properties
Proper planning and orderly execution have an impact on the outcome of building acceptance. The verdict of Munich Higher Regional Court dated 15 December 2008, whereby acceptance of a property jointly owned by a homeowners' association which is performed by the construction developer's expert appraiser is invalid, has spread considerable uncertainty throughout the real estate sector. "A consequence could be that warranty claims against the developer may occur many years after the building's completion, exposing developers to long-standing liability risks", explains Herbert Gottschalk of TÜV SÜD Industrie Service. Gottschalk points to the successful practice of bringing in TÜV SÜD as a mediator for "transferors and transferees". In this case, legally valid acceptance of the joint property is completed on behalf of and in the interests of the transferees. The basis of the procedure is to provide reliable answers to the questions of whether major faults are present and whether acceptance of the property can also be guaranteed for first buyers at a later stage. Information in this respect may also be derived from a preceding quality control process during construction.
TÜV SÜD Certificate guarantees transparency in the energy efficiency of lift systems
Although the issue of sustainability covers far more than mere energy efficiency, conservation-based use of energy resources remains a key factor. In commercial properties, lift systems may represent a significant area of potential savings. "Energy consumption of lift systems can often be considerably reduced by introducing minor changes, with the idea of 'small input, big impact'“, notes Dieter Roas, head of the Lifts and Machinery Division at TÜV SÜD Industrie Service. TÜV SÜD's evaluation of energy efficiency based on the VDI Guideline 4707 reveals these areas of potential, and is easily recognizable by the TÜV SÜD Energy Efficiency label in lifts which have been inspected under this procedure.
Events at Expo Real
** On 5 October Holger Busch, CEO of TÜV SÜD ImmoWert GmbH, will take part in the panel discussion "Marktplatz München" (Munich as a Marketplace") at Expo Real: "Nachhaltiges Bauen - was bringen Zertifikate?" (Sustainable Building – What Do Certificates Achieve?) (Hall A1, Marktplatz München, from 5 pm)
** On 5 October at Expo Real, TÜV SÜD will award the SCoRE Certificate for two administration buildings of financial services provider KGAL (Hall A1, approx. 5.30 pm)
Media Contact: Dr. Thomas Oberst
