The Cape Quarter, the flagship property of the Tower Property Funds portfolio, will soon be retrofitted for solar energy as part of the fund’s greening and occupancy cost reduction strategy.
Solar panels will be installed on the roof of the property and will supply about R350 000’s worth of electricity, with a 10% yield growing at a minimum of 8%. However, it is expected that this figure will grow, given Eskom’s predicted high tariff increases. The Cape Quarter has also undergone lighting and other retrofits that will save it R1-million a year in energy costs.
Said Tower Property Fund CEO Marc Edwards: “Recent global research has shown that green buildings outperform normal buildings significantly, on average achieving rental premiums of 6% and capital value improvement of 12% while reducing operating costs by 30%. We will be rolling out this solar retrofit at Cape Quarter first, but this will soon be followed by similar initiatives at all suitable buildings within the portfolio.”
Tower Property Fund listed on the JSE in July 2013 under the new REIT structure.