tive technology-based projects like green buildings can bring about banks and lending agencies to ask for more strict requirements raising the DSCRpre-tax targets and shortening the loan duration. From a conventional building prospective, the best bankable scenario is with an annual minimum rent of 1.717RM and 88 % of debt leading to a NPV of 2.860 RM. Starting from this reference standard value, it is possible to realize that the sustainable building outperforms in terms of NPV, under the conditions of a 25-years long loan. The only exception is the scenario with DSCRpre-tax1.55 where even with loan durations of 25 years the NPV is lower than the conventional one. In summary, we can state that a sustainable design-following the standards set up in our case study- leads to profit maximization, even if specific considerations need to be investigated in case the banks are asking a DSCRpre-tax greater than or equal to 1.55. However, according to our experience and with the concept that rental building is considered a quite safe investment project, the banks are not supposed to ask more than 1.45 for the DSCRpre-tax and a loan shorter than 25 years. This leads to the conclusion that the Green Mock-Up Building is a more profitable investment than its standard counterpart, even compared to the worst-case scenario.
6. Conclusions
This research has investigated the advantages of going green and energy-efficient in a tropical emerging country like Malaysia merely from a financial point of view. The study addressed two specific experimental case studies and attempts to prove the higher financial value private owner can benefit by choosing a specified sustainable design rather than its standard counterpart. The body of this research focused on determining the cash flows over the life cycle of both conventional and green buildings and to deploy a financial plan in order to support private building investors in choosing among sustainable and standard design. As summarized in the previous section, the results prove that the Green Mock-Up building produces larger financial value compared with the conventional one. Even in the worst-case scenario where more strict requirements are considered our to green and sustainable project, the findings show that the investors should still focus on the sustainable design. Apart from a reduction of operational costs and subsequently CO2 to cover the gap towards the achievement of thermal comfort, there are plenty of additional sustainable buildings advantages not considered in this mere financial research. It is widely recognized that green energy efficient buildings lead to environmental assets( reducing waste, improving health by air quality, conserve natural resources) and social benefits( well-being and quality life improvement). However, those benefits are so far still enunciated more related to public institutions rather than to private investors. To enable potential buyers to gain more information, our approach focused the profitability of sustainable buildings.. The findings presented in this initial publication can even encourage investors and owners to embark in energy efficient residential houses
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108 ZEMCH 2015 | International Conference | Bari- Lecce, Italy