8 Aug 2024
In today's tough economic environment, businesses are struggling with rising operational costs and a pressing need for sustainable practices. In response, commercial property fund management business PMG Funds is prioritising the search for innovative funding solutions for economic and environmental sustainability initiatives. This approach provides significant benefits to both tenants and investors.
In this blog, PMG's Head of Sustainability and Facilities Management, Simi Mukherjee, delves into PMG's innovative strategies to champion sustainability, even in challenging economic times.
Property Partner of Choice
Our sustainability strategy focuses on cost-effective sustainability initiatives. We are committed to reducing the operational costs and carbon footprints of the properties we manage. Last year, we signed a significant partnership agreement with Sunergise, an award-winning solar provider, with the aim of providing renewable energy to buildings within our funds by installing solar power solutions. This initiative sees Sunergise handle the design, installation, and ongoing maintenance of solar panels at no cost to PMG, its tenants, or investors. The initial phase of our partnership involved installing solar panels on three of our properties - one early childhood education centre and two office buildings in the North Island, with the fourth installation set to begin soon at Truman Lane, Mount Maunganui, which our tenant Tui Garden Products, occupies.
Our collaboration with Sunergise demonstrates how we can simultaneously deliver on our promise to be the property partner of choice for our tenants and investors. For our tenants, it provides cheaper and cleaner power; for our investors, it means no capital outlay is required from the funds they are invested in to install the green energy sources today's tenants are demanding. Additionally, investors will see lasting benefits when tenants renew their leases and opt to remain in our buildings for an extended period.
Beyond the partnership with Sunergise, we are actively involved in other low-cost sustainability initiatives. We have partnered with ChargeNet to install electric vehicle (EV) chargers at our properties, including Bethlehem Town Centre. Here, we have added an additional revenue stream by leasing exclusive parking bays to ChargeNet for EV chargers, requiring no capital investment from PMG. This initiative, which launched in July, not only supports sustainable transport but also meets the growing demand for EV infrastructure in the region.
Additionally, we are proactive in waste management, measuring and reporting on all waste streams with the intent to divert as much waste from landfills as possible. We work with our tenants to support them in their sustainability journey and conduct waste education sessions. These sessions aim to promote sustainable waste practices, further embedding environmental consciousness within the business operations of PMG's tenants. Investing in sustainability is not just about immediate cost savings; it's about building resilience and preparing for the future.
Long-term resilience
Although the current economic climate is tough, the long-term benefits of sustainable practices are significant. Efforts to decarbonise real estate are critical in mitigating the effects of climate change, and resilience measures are essential to ensure buildings can withstand these changes. By implementing the right sustainability measures at the right time, property owners can minimise the impact of climate-related risks on their assets' value and income generation.
For many businesses, this translates into reduced disruptions and enhanced business operations. Moreover, developing sustainable and inclusive spaces positions businesses to thrive in a future where environmental considerations are paramount. Our strategic partnerships and sustainability initiatives illustrate how companies can navigate economic challenges by investing in green solutions. Through our collaboration with Sunergise and ChargeNet, we are reducing operational costs, retaining tenants, and delivering regular returns and growth in value over time to investors—all while contributing to a more sustainable future.
As the focus on sustainability continues to grow for occupiers and tenants - we acknowledge our opportunity to play a prominent role in leading the sector.
