Installation, Activation And Collaboration Key To Driving Sustainability Gains In NZ’s Commercial Property Sector

Tauranga-based PMG Funds continues to show the way forward for New Zealand’s unlisted property funds sector with the release of its third annual sustainability report.

Titled Lead, Inspire and Succeed, the report highlights the breadth of ways in which commercial property owners, investors, tenants and professional service providers can all contribute to improving environmental, social and financial outcomes for New Zealand and New Zealanders.

PMG Funds’Chief Executive, Scott McKenzie, says that sustainability is integral to PMG’s investment strategy of providing cashflow and growth over time through quality assets. Therefore, even during a challenging economic period, they have remained focused on delivering improved outcomes through their portfolio of 48 commercial properties.

“This year we’ve added a 5 Green Star NZ-rated building to our funds portfolio that already fits the desired environmental profile of providing a healthy, energy-efficient workplace for tenants and long-term value for investors. However, one of property’s great truisms is that the most sustainable building is the one that’s already been built. This is why we are

constantly looking at how we can enhance the environmental performance of existing buildings, particularly when it comes to energy efficiency.”

McKenzie says this means not just looking at what they can do themselves, but what can be achieved through partnerships with others.

“At our 152 Fanshawe Street office property in Auckland, we partnered with Spaceworks to design a fitout that delivered a 40% reduction in embodied carbon compared to traditional construction methods. With wider building enhancements enabling us to reduce annual energy use by almost 12 per cent, this property now has a 5.5-star NABERS rating and delivers significant value to both our tenants and investors.”

“Through our partnership with solar provider Sunergise, we now have solar installed at four of our properties – an ECE centre, an office complex and two industrial properties – which has reduced the carbon footprint and operating costs of each.”

PMG’s sustainability philosophy is centred around creating the opportunity for everyone to contribute to and benefit from better outcomes. When it comes to maximising the environmental performance of buildings, McKenzie says their approach can be effectively broken down into three stages: of installation, activation and collaboration.

“By installing better-performing assets, such as solar, ventilation, LED lighting, waste management and quality end-of-trip facilities, we can provide the basis not only for energy savings, but for better health and well-being outcomes and wider sustainability enhancements. However, these can only be fully realised by the activation of smart building

management systems, and the participation of tenants who are engaged and understand how to drive efficiencies through their own behaviours.”

McKenzie says that for PMG, the appetite for collaboration from its tenants is reflected through a couple of key metrics.

“To fuel continual improvement, we seek feedback annually on our partnership approach to property management through an anonymous tenant survey. This last financial year, we received an above industry average Net Promoter Score of 39 which, coupled with an average occupancy of 98% across our portfolio, shows that together we can make an important step change.”

A copy of PMG’s FY2024 Sustainability Report is available for download here:  

https://www.pmgfunds.co.nz/pmg-sustainability-report

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