Responsible Property Investment

Continued improvement in energy performance is a key objective across the Lothbury Property Trust (LPT).

Location-based greenhouse gas emissions (GHGs), on a like-for-like basis, have reduced by 35% between 2016 and 2019, across the managed LPT portfolio.

This has been achieved by reviewing the portfolio through technical building assessments to evaluate current performance and highlight potential improvement opportunities across numerous metrics, including energy, water, waste, biodiversity and health & wellbeing.

Optimisation of building equipment and management systems has been undertaken to reduce consumption, with temperature set points and heating on/off times changed in parallel with building occupier communication to ensure thermal comfort and service is unaffected. Between 2018 and 2019 like-for-like energy consumption across the LPT managed portfolio reduced by 3%.

To reduce market-based GHGs, Lothbury Investment Management (LIM) have entered renewable energy contracts for electricity and gas supplies across all of the managed portfolio. These green supplies have significantly decarbonised LPT’s managed portfolio. Promotion of renewable contracts with the Fund’s tenants is being undertaken across the wider portfolio.

Energy audits are conducted across the managed portfolio to determine further optimisation opportunities to reduce energy consumption, reducing the carbon footprint of the portfolio and generating cost savings for LPT’s tenants.

Tenant engagement is carried out on an ongoing basis by LIM’s Asset Managers, both formally at quarterly tenant meetings and through regular correspondence throughout the year. This develops a greater understanding of specific tenant ESG matters, enabling support to be provided to reduce energy consumption and GHG emissions in a coordinated manner.

This 1950’s office building is in a prominent location in the St James’s area of London. Lothbury Property Trust acquired it in 2011, to deliver a comprehensive redevelopment scheme.

The demolition of the existing building began in Q1 2013 and completed in Q3 2015. The development has delivered 23,000 sq ft of Grade A office accommodation into a West End market where there is a shortage of supply, alongside five residential units and a pub operated by Spirit Pub Company.

The development achieved an ‘Excellent’ BREEAM Sustainability rating, with environmental features that include a living green roof and invertebrate habitat wall, air source heat pumps and solar thermal hot water systems for the apartments.

As part of Lothbury Property Trust’s West London Industrial holding, a new 40,000 sq ft distribution unit was developed and completed in February 2018.  The development was undertaken on a brown field site and involved remediation of parts of the existing soil.

The property was pre-let to Royal Mail on a 15 year lease and on completion achieved a BREEAM Sustainability rating of Excellent with an associated EPC rating of A.

Environmental features included the installation 307 sqm of PV panels, 8 EV charging points with future proofing for a further four and leak detection measures were incorporated to help prevent wasted water.

This was the first speculative office development in Norwich to achieve a BREEAM Sustainability rating of Very Good, which we achieved by adopting best practice throughout the construction process.

This included recycling construction waste, using recycled, crushed aggregates, minimising CO2 emissions from site activities, monitoring and separating waste for recycling, installing solar glazing and Brise Soleil made from FSC sourced cedar, and introducing a Green Travel Plan.

This prime retail development scheme boasts a ‘Very Good’ BREEAM sustainability rating, which we achieved through a number of initiatives in both design and construction. On site, the team targeted reductions in building waste by ordering supplies more accurately, ensuring that unused product could be returned and by joining a ‘sort and recycle’ scheme.

The development scored in the upper quartile of the ‘Green Guide to Specification’ for its use of building materials. Now the development is completed, its 184 photovoltaic panels are producing 12% of its energy, and efficient insulation that surpasses the regulatory minimum is reducing heat loss. To enhance local biodiversity, the building incorporates bird boxes and a sedum roof that provides a habitat for at least eight different species.

The diversified Secure Income Fund consists of nine properties located across the UK. Reduction in energy consumption has been a key priority for Lothbury Investment Management, in line with its ESG Strategy. Across the entire portfolio, energy consumption has reduced by 18% on a like-for-like basis between 2016 and 2019.

Associated location-based greenhouse gas emissions have reduced on a like-for-like basis by 45% between 2016 and 2019, significantly reducing the fund’s carbon footprint.

Due to the assets being let under long term FRI leases, regular tenant engagement has been a key element that has contributed to understanding, discussing and supporting the reduction in energy consumption at each property.

Looking forward, Lothbury Investment Management will continue to communicate closely with each of the portfolio’s tenants to identify further opportunities to reduce energy consumption, implement efficiency measures, and promote renewable energy.

Hyndland House is a six storey, 174 bed student accommodation building that was constructed and completed in 2014. The property is let under a long lease to Derwent Living. The building, which is certified to BREEAM New Construction ‘Very Good’ and holds an EPC rating of C, is managed in accordance with an Energy Management System accredited to ISO50001, providing an internationally recognised framework to reduce the building’s energy and carbon footprint.

Lothbury Investment Management have worked with Derwent to review and implement measures at the property each year, and have reduced energy consumption by 5.5% between 2018 and 2019.

Energy audits have been undertaken to review the property’s energy consumption and provide recommendations to improve efficiency and performance. Efficient LED lighting has been installed throughout the property, alongside PIR motion sensors in corridors and common areas to reduce consumption. Operational times of building plant and equipment have been assessed weekly with management of set point temperatures and on/off times routinely amended to reduce energy consumption.

Regular communication is conducted with student residents by the property management team to provide sustainability guidance and educate them in living in a more energy conscious way. A ‘lights-off’ campaign has been undertaken, which has included the implementation of new signage and reminders to encourage lights to be switched off.

Furthermore, to reduce the property’s wider associated carbon footprint, an Electric Vehicle (EV) charging point was installed in 2019, available for both student and staff use.