India s Green Footprint. Sustainable Real Estate s Growing Momentum in India

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1 India s Green Footprint Sustainable Real Estate s Growing Momentum in India

2 On Point India s Green Footprint Green Schemes Are the Order of the Day Green buildings are buildings that use fewer resources and have a lesser negative impact on the environment compared to conventional buildings. They use less water, optimise energy efficiency, conserve natural resources and generate less waste without compromising the utility and comfort of occupiers. A green building is designed in such a manner that its resource efficiency is attained not only during its operation and maintenance but also during other stages of its lifecycle (i.e. - construction, redevelopment, and even demolition). India s green building footprint has grown considerably over the past six years. Initiatives undertaken by occupiers and developers, as well as those by state and central governments, have driven this progress. Floor area in green buildings grew by over 50% in 2009 despite an overall sluggish macro-economic environment. Figure 1: LEED Certified Green Building Footprint in India* 80 Built Up Area (mn sq ft) E Source: Indian Green Building Council (IGBC) * Includes office, residential, retail, hotel, educational, hospital and airports.

3 3 On Point India s Green Footprint Green Building Rating Systems in India India currently has two major rating systems: LEED India, run by the Indian Green Building Council; and Green Rating for Integrated Habitat Assessment (GRIHA), a system developed by The Energy and Reasearch Institute (TERI) and the Ministry of New and Renewable Energy. The GRIHA rating system is slowly strengthening its presence alongside the more popular LEED India. Currently there are only two GRIHA rated completed projects and about 40 are under evaluation. Table 1: Major LEED India Certified Green Real Estate Projects in India Building Type City Project Built Up Area (sq ft) LEED Rating Airport Hyderabad Rajiv Gandhi International Airport 1,259,378 Silver Exhibition Bangalore IMTMA s Banglore International Center 1,481,040 Certified Hospital Mumbai Kohinoor Hospital 227,432 Platinum Hotel Bangalore ITC Royal Gardenia 737,294 Platinum Office Bagmane World Technology Center 782,651 Gold Bangalore Xylem 525,000 Gold Chennai Olympia Technology Park 1,800,000 Gold RMZ Millenia Business Park 1,717,635 Gold Gurgaon ITC Green Centre 170,000 Platinum Hyderabad CII-Sohrabji Godrej Green Business Centre 20,000 Platinum Kolkata Technopolis 775,000 Gold Infinity Benchmark 560,535 Platinum K. Raheja Corp. C 30 BKC 120,000 Gold 24X7 Park 1,800,000 Gold Mumbai Mindspace Airoli, Building No 8 237,498 Gold Hiranandani BG Building 95,000 Platinum Kalpataru Square 326,937 Platinum R&D Lab Hyderabad VIMTA Life Sciences Campus, Genome Valley 39,673 Gold Source: Indian Green Building Council (IGBC) Table 2: Major Projects Registered for LEED Certification City Building Type Project Built Up Area (sq ft) Commercial Building-IT Park Building No. 12, Madhapur 2,050,000 Hyderabad Retail & Commercial RMZ Esplanade 2,350,000 IT & ITeS SEZ Hill County SEZ - Stage I 1,980,000 Kolkata IT Special Economic Zone (IT SEZ) SP Infocity 1,468,632 Commercial Raheja Solaris 1,000,000 Raheja Platinum 1,300,000 Mumbai Info City 2,581,000 Commercial Building-IT Park Building No.9, Herdilia 1,050,000 IT & ITeS SEZ Marathon Nexzone-Sanvo 3,000,000 Residential Tower Mahindra Splendour 1,400,000 NOIDA IT, SEZ Unitech Infopark SEZ 2,568,000 Table 3: Major GRIHA Rated Green Real Estate Projects in India Building Type City Project Built Up Area (sq ft) Educational Institute Kanpur Centre for Environmental Sciences and Engineering- IIT Kanpur 43,947 Office Pune Suzlon One Earth 816,172 Source: TERI- Green Rating for Integrated Habitat Assessment (GRIHA)

4 4 On Point India s Green Footprint Key Corporate Occupiers Setting the Pace Wipro, Microsoft, Cognizant, ABN AMRO and TCS, along with other international and domestic corporate occupiers, have either developed, or are developing, energy efficient office spaces or largescale campuses: LEED certification norms are being implemented to manage Wipro s building infrastructure as part of Wipro s EcoEye charter (their ecological sustainability program). Microsoft has decided to adopt green building techniques during renovation or construction of new buildings in India. Other occupiers such as Infosys, Computer Associates and Oracle are also planning to develop green office spaces to leverage the financial and environmental benefits that they provide. Other sectors such as manufacturing, education, hospital and hotels are also demanding green spaces. Examples include: Motorola and Modine Thermal Systems factories are operating out of LEED certified green buildings. ITC has developed ITC Royal Gardenia, which is a LEED Platinum rated building. Lavasa Hotels has developed Hotel Fortune Select Dasve, which is a LEED Silver rated building. Educational Institutes such as Hyderabad Institute of Technology and Management in Hyderabad, and Rane Institute for Employee Development in Chennai are operating out of LEED certified green buildings. Kohinoor Group has developed Kohinoor Hospital in Mumbai, which is a LEED Platinum rated building. Table 4: Notable Occupier-Developed Green Buildings in India Company LEED Rating Location Project ABN Amro Bank Platinum Ahmedabad ABN Amro Bank N.V. Gold Chennai ABN Amro Bank - Central Enterprises Cognizant Gold Coimbatore Cognizant Green Campus Microsoft Gold Hyderabad Microsoft Building 3 TCS Gold Chennai TCS Technopark Wipro Platinum Gurgaon Wipro Technologies Gold Hyderabad Wipro Special Economic Zone, Gopannapally,S1 & S2 Kochi Noida Wipro Technologies SDB1 Fast Track Building 1 & 2, Wipro Technologies Pune Software Development Block 3 Silver Bangalore Wipro Special Economic Zone (EC) Tower S2 Chennai Wipro Special Economic Zone (SR) - Tower S3 Wipro Chennai Development Center- SEZ

5 5 On Point India s Green Footprint Major Developers Commit to a Green Future In the small, but growing, demand for green building space, regional and national developers in India have responded with an array of new projects. Construction of new green spaces for office buildings, residential units and retail malls is currently underway in cities throughout the country. The beginnings of a mindset shift can be observed with major players such as national developer K. Raheja Corp. committing to make all new projects LEED certified. Similarly, State Bank of India is offering a Green Home Loan Scheme with lower interest rates to support green residential projects. Table 5: Notable Green Projects Under Construction by Major Developers in India Developer Project name Project Type Location K Raheja Corp Private Limited K Raheja Universal Pvt. Ltd. K Raheja Corp C 30 BKC Office Mumbai Commercial Building at Hindustan Mills Office Mumbai Raheja Solaris Office Mumbai Raheja Platinum Office Mumbai Raheja Iridium Office Mumbai Info City Office Mumbai Kalpataru Limited Kalpataru Square Office Mumbai Mahindra Lifespace Developers Limited Inorbit Malls (India) Private limited Bullow IT Park Office Mumbai Mahindra Chloris Residential Faridabad Mahindra Splendour Residential Mumbai Mahindra Royale Residential Pune Alembic Mall Retail Vadodara Makarpura Mall Retail Vadodara Indian Government Doing Its Part to Make Realty Greener Some noteworthy steps have been taken by central and state authorities in India to support the environment and to help minimise the impact that the real estate industry has upon it. The Bureau of Indian Standards has developed the Energy Conservation Building Code (ECBC) which, along with numerous other new policies by the Government of India, will support energy efficiency. The Prime Minister of India has released the NAPCC (National Action Plan on Climate Change), which reinforces the objectives of sustainable development and will shape India s future development policy. India s Ministry of Environment and Forestry has undertaken 24 initiatives related to climate change. The Government of India has proposed to develop all of its new buildings as energy efficient spaces. The state governments of Andhra Pradesh, Maharashtra and Karnataka are planning to develop their own green building byelaws. At the recent Copenhagen Summit (COP 15), India was hailed a climate change deal-maker, a country that takes global climate change issues seriously. As a developing nation, India insisted that carbon commitment pledges remain voluntary, instead of being subject to international enforcement. The Ministry of Environment and Forestry is confident that India can not only meet its pledge of cutting carbon emissions by % by 2020 over 2005 levels, it can improve upon it. These initiatives clearly indicate that India is on its way to integrated sustainable development.

6 6 On Point India s Green Footprint Case Study - Vimta Labs Vimta Labs, a leading contract research & testing organisation in India, has been providing support to clients in the pharmaceutical and biotechnology industries across the globe since Although headquartered in Hyderabad, Vimta Labs has a pan-india reach, with offices and laboratories in 4 states and 8 cities. With a staff of over 750 professionals, including nearly 500 scientists across various disciplines of life sciences, the organisation offers testing and contract research services in several fields which include: Clinical and pre-clinical studies Clinical reference Analytical testing Advanced molecular biology Environmental studies The organisation is committed to the principles of sustainable development with safety, health and environment being the top most priority areas. Vimta has implemented important green initiatives such as recycling waste water, minimising energy consumption and reducing potable water usage. In January 2010, Vimta Labs achieved LEED Gold certification through the Indian Green Building Council (IGBC) for a pre-clinical laboratory, which is located within their 11 acre, 210,000 sq ft life sciences campus in Shameerpet, Hyderabad. Given Vimta Lab s commitment to environmental protection, the concepts of sustainable design suitable for its building type and location were taken into consideration from the pre-construction planning stage itself. As the building was going to be a clinical testing facility, there were numerous challenges in implementing green building techniques, including limited flexibility in design and budget. The proposed design for the project was also going to increase the energy load of the building. To avert this, Vimta, with the assistance of Jones Lang LaSalle, put in place measures to save energy and water, and reduce waste in the building. Vimta Labs Headquarters, Hyderabad, India

7 7 On Point India s Green Footprint Measures Undertaken to Make Vimta Labs Greener Sustainable Sites Buses were provided as mass transport for the employees as the alternative to public transport. Plug points were provided as alternate refueling options for vehicles. Heat island effect was minimized by reduction of paved areas. 60% of the site was covered by green belt. Canopy trees were planted in the parking area to reduce the heat radiation from the paved area. Saving Potable Water Potable water usage has been reduced by almost 40% in the building due to high efficiency plumbing fixtures. Waste water treated in the sewerage treatment plant is used for irrigation purposes. Rain water harvesting was also implemented in the site which provided water for irrigation and flushing purposes. Saving Energy Energy efficient interior lighting, energy efficient HVAC and chillers, and solar water heaters were used to reduce energy consumption. A triple glazing process was used on the building to reduce the heat intake considerably. Solar reflective paints were used on the roof to reduce heat island effect in the building. Effective Resource Utilization Best practices in solid waste management were used for waste segregation. 95% of the construction waste was diverted from the site efficiently. There was increased use of recycled and refurbished materials in the building. 50% of the materials were sourced from within 500 miles from the project site to support the local economy and minimize transportation costs. Enhanced Indoor Air Quality Walls were provided with air gaps to control indoor climate. CO 2 censors were used to monitor and enhance the indoor air quality. Low VOC paints and MERV -17 filters used to improve indoor air quality. Ventilation rates were increased by 30%. Energy Saving Parameters at Vimta Labs Green Achievements at Vimta Labs SRI Paint Insulation 2% Interior Lighting 20% HVAC System 25% Solat Water Heating 2% Triple Glazing 26% High Efficiency Chillers 25% Energy savings 22.5 % Potable Water conservation 40 % Resource Reuse 6% Materials with recycle content 12% Source: Jones Lang LaSalle-Energy & Sustainability Services

8 8 On Point India s Green Footprint Energy & Sustainability Services Building sustainable solutions Developed and developing economies are confronting the dual challenge of a growing demand for diminishing resources combined with the need to reduce environmental impact. Sustainability has increasingly become a crucial factor in the assessment of real estate options. There is a growing awareness from property owners and occupiers that sustainability is a key factor in evaluating asset potential or reporting on asset performance. Jones Lang LaSalle stays ahead of global trends to ensure that our clients are in a position to embrace and benefit from change in the Green domain Jones Lang LaSalle s Energy & Sustainability Services provides practical advice backed up by a range of sustainability services. This enables our clients to make sound commercial decisions that support their sustainability objectives. Our clients benefit from our access to regional and global best practices in sustainability as well as our hands-on experience with day-to-day building management topped with operational and cultural challenges that face today s real estate decision makers. Driving your successful outcomes Jones Lang LaSalle offers a range of services for new, existing, or refurbishment projects to optimize expenditure and maximize the results of sustainability initiatives. Irrespective of a building s lifecycle, each element can be improved by applying skills derived from the ongoing management of many premium properties across Asia Pacific. Our approach is based on the experience gained within our Property and Asset Management and Integrated Facilities Management teams that currently manage close to 100 million sq ft in India in the commercial, retail, and industrial space across the region. Our services can be applied at various points of a building s lifecycle. Our expertise can be leveraged to work in harmony with existing design and construction teams to provide specialist insight into features that impact final sustainability outcomes. These services include the following: Design and construction consulting Commissioning assistance Sustainability and energy management Energy and water audits, assessments, and improvement plans Asset acquisition profiling and repositioning advice Capital expenditure review Repairs and maintenance review

9 About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of USD2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company s investment management business, is one of the world s largest and most diverse in real estate with approximately USD38 billion of assets under management. For further information, please visit our website, Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 18,500 employees operating in 75 offices in 13 countries across the region. About Jones Lang LaSalle India Jones Lang LaSalle is India s premiere and largest professional services firm specializing in real estate. With an extensive geographic footprint across ten cities (Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 3000, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, consultancy, transactions, project and development services, integrated facility management, property and asset management, capital markets, residential, hotels and retail advisory. For further information, please visit Real Estate Intelligence Service (REIS) India is a subscription based research service designed to provide you with cutting edge insights into India s diverse and challenging real estate markets through collation, analysis and forecasts of property market indicators and trends across all major Indian markets across various real estate asset classes - office, retail, residential. REIS empowers you with consistent and complete market data and analyses for all real estate indicators by specific micro markets. It is supplemented by value added services including client briefings, presentations and rapid market updates. For more details, contact, Abhishek Kiran Gupta - abhishekkiran.gupta@ap.jll.com or Avinash Mirchandani - avinash.mirchandani@ap.jll.com Jones Lang LaSalle offices Bangalore tel fax Chandigarh tel fax Delhi tel fax Hyderabad tel fax Kolkata tel fax Mumbai (Lower Parel) tel fax Chennai tel fax Coimbatore tel fax Gurgaon tel fax Kochi tel fax Mumbai (Parel) tel fax Pune tel fax For more information, please contact Kumar Ramaiah Asst. Vice President Energy & Sustainability Services kumar.ramaiah@ap.jll.com Rajat Malhotra Head - Engineering & Operations Solutions, West Asia Integrated Facilities Management rajat.malhotra@ap.jll.com We would like to acknowledge the contributions of Trivita Roy, Senior Researcher, to this report. COPYRIGHT 2010 JONES LANG LASALLE. All rights reserved. No part of this publication may be published without prior written permission from Jones Lang LaSalle. The information in this publication should be regarded solely as a general guide. While care has been taken in its preparation no representation is made or responsibility accepted for the accuracy of the whole or any part. We stress that forecasting is a problematical exercise which at best should be regarded as an indicative assessment of possibilities rather than absolute certainties. The process of making forward projections involves assumptions regarding numerous variables which are acutely sensitive to changing conditions, variations in any one of which may significantly affect the outcome, and we draw your attention to this factor.