Green Finance for Slideshare

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This is a partial presentation our in depth green real estate finance and investment seminars for sustainability professionals. Galley Eco Capital has pioneered financial services to real estate developers, investors and sustainability practice leaders on green real estate finance best practices that boost returns.

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  • Green Finance for Slideshare

    1. 1. Green Finance for Commercial Real Estate Stay ahead of the curve with new tools and underwriting standards. Boost your ROI on capital investments.
    2. 2. Where we’re headed today… Analytical Tools & Standards The Green Capital System LCCA Simple Payback NPV IRR Underwriting Standards RPI Underwriting Factors Green Equity Economic, Environmental & Social Outcomes Green Debt (?) Financial Incentives Green Leases
    3. 3. Real Estate Finance used to seem so simple…
    4. 4. Cap That! True Story <ul><ul><li>265,000 sf office </li></ul></ul><ul><ul><li>$200,000 from PG&E </li></ul></ul><ul><ul><li>$0.50 /SF savings p.a. </li></ul></ul><ul><ul><li>$1.3 mm over ten years </li></ul></ul><ul><ul><li>$2.2m value increase </li></ul></ul>CHILLER
    5. 5. About Galley Eco Capital Transaction Size <ul><li>Real Estate $20mm+ / Solar & Wind = 1MW+ </li></ul>Objective <ul><li>Connect full range of financial products / benefits for green projects. Business intelligence, structuring, financial modeling and due diligence expertise. </li></ul>Sectors <ul><li>Sustainable Real Estate & Renewable Energy </li></ul>Location <ul><li>Nationwide </li></ul>Structures <ul><li>Entity-level Investment Programs, Hybrid Debt/Equity Structures, Energy-Savings Financing Structures. </li></ul>Current Pipeline <ul><li>$200mm </li></ul>
    6. 6. Example: Shiloh Sustainable Village <ul><li>Sponsored by North Street Partners : </li></ul><ul><li>Town of Windsor, Sonoma County. </li></ul><ul><li>Net Zero Energy + Carbon Neutral Urban infill mixed use. </li></ul><ul><li>1. Passive design. 2. Solar energy. 3. Carbon credits. </li></ul><ul><li>LEED-ND & LEED CS development . </li></ul><ul><li>$62mm project value. </li></ul><ul><li>Competitive Occupancy Costs = Competitive Investment: </li></ul><ul><li>1. Zero electricity for residential tenants; 10% lower electricity costs for retail. 2. Designed in Hedge against Energy & Water Price Risk. </li></ul>
    7. 7. 2030 Challenge <ul><li>Every year we: </li></ul><ul><li>Tear down ~ 1.75 Bn sf. </li></ul><ul><li>Renovate ~ 5 Bn sf. </li></ul><ul><li>Build new ~ 5 Bn sf. </li></ul>US building stock = 300 Bn sf.
    8. 8. 2030 Challenge <ul><li>By 2035, nearly 75% of the built environment will be new or renovated. </li></ul>www.2030challenge.com The next 30 years offers a historic opportunity for: communities to avoid dangerous climate change. <ul><li>architecture </li></ul><ul><li>building </li></ul><ul><li>AND FINANCE </li></ul>
    9. 9. A system of public and private market financial mechanisms that promote sustainable real estate. Green Finance: Rewards Resource Value Integrative Intentional
    10. 10. Tools
    11. 11. No more “ Compartment of Finance” Think: ‘ Sustainability Operating System’ An interrelated system of processes that use sustainability to achieve economic, environmental and social outcomes. * Managing your cost of capital is a key part of this system.
    12. 12. Green Real Estate Finance & Investment Experts <ul><li>Lisa Michelle Galley, Managing Principal </li></ul><ul><li>Galley Eco Capital, LLC </li></ul><ul><li>71 Stevenson Street, Suite 400 </li></ul><ul><li>San Francisco, CA 94105 </li></ul><ul><li>(415) 655-6668 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.galleyecocapital.com </li></ul><ul><li>Project/Portfolio Consulting </li></ul><ul><li>Incentives/Cost Segregation </li></ul><ul><li>Green Finance Education </li></ul><ul><li>Recommended Reading </li></ul>

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