23 Oct 2024
At PMG, sustainability drives both innovation and long-term value for our tenants and investors. We're dedicated to implementing cost-effective, environmentally responsible initiatives that lower operational costs and carbon footprints across our property portfolio. A standout example of this is our partnership with Sunergise, a leading solar energy provider, helping us deliver renewable energy to our properties.
A no-cost solar solution for long-term value
Two years ago, PMG entered a partnership with Sunergise to install solar power systems at select commercial properties across our portfolio. As part of this agreement, Sunergise takes full responsibility for the design, installation, and ongoing maintenance of the solar panels—at no cost to PMG, its tenants, or its investors. This approach allows us to integrate sustainable energy solutions without any capital outlay.
Solar panels have already been installed at three key North Island properties: an early childhood education centre at Red Beach, a warehouse on Druces Road, and an office building on Main Highway, all in Auckland. These installations are already delivering energy savings, providing tenants with cleaner, more affordable power. A fourth installation at Truman Lane in Mount Maunganui has just become operational.
Substantial solar savings for tenants
A key outcome of this partnership has been the measurable cost savings for our tenants. Over the past six months, two of our first solar-equipped properties—Red Beach and Druces Road—have achieved substantial reductions in energy bills:
These savings average close to 35% over a six-month period (November 2023 – April 2024), which is a significant benefit for our tenants and underscores the economic viability of solar energy.
Benefits for investors: long-term stability and sustainability
For PMG investors, this partnership represents long-term value creation. By providing solar energy without requiring capital outlay, we keep our focus on delivering sustainable returns. More importantly, properties powered by renewable energy are increasingly attractive in today's market. As businesses prioritise sustainability, energy-efficient buildings become highly desirable.
This rising demand can translate into higher tenant retention and lease renewals, as tenants appreciate the value of staying in environmentally responsible, energy-efficient spaces. In turn, this stability fosters long-term occupancy and regular returns for our investors over time.
A broader commitment to sustainable growth
Our collaboration with Sunergise is a key component of PMG's broader sustainability strategy. As the market shifts toward more eco-conscious practices, PMG is committed to expanding sustainability initiatives across our entire portfolio. Whether through energy-efficient upgrades, waste reduction programmes, or renewable energy solutions, our goal is to create high-performance properties that align with the needs of today’s businesses.
By partnering with industry leaders like Sunergise, we are fulfilling our promise to be the property partner of choice, delivering value today and for years to come. As we explore further renewable energy options, we look forward to shaping a more sustainable future for the commercial real estate sector—one solar installation at a time.
Disclaimer: The information in this article is of a general nature and was current as at 23 October 2024. It is not intended to be regulated financial advice for the purpose of the Financial Markets Conduct Act 2013, and does not take your individual circumstances and financial situation into account. PMG does not provide financial advice on whether or not an investment in one of its funds is right for you. Please seek advice from a licensed financial advice provider before making any investment decisions.
