Sustainability should be about cutting costs, generating environmental benefits, creating more demand from consumers and therefore earning higher returns and profits. For Oxford, this is exactly what it is about.

Sustainable planning

There are 3 generic factors that must be covered to create sustainable planning:

1)  Planning has to be holistic. An example is shown using the Oxford 360 degree sustainability index below.

2) Planning has to be more open to change, especially in the fast-changing world of today.

3) Many different parties have to be involved in the planning process. That means local people as well as professionals. The more opinions you get, the wider context the planning gets.

Faster planning cycles mean a quicker return on your investment, lower construction costs mean profits rise, higher quality and higher demand buildings mean sales move more rapidly and can include a premium for consumers.

A few concrete examples are included below:

• Carefully planning the site placement of a building can definitely affect its reliance on mechanical heating and cooling systems as well as artificial light. The result is significant operating cost savings.
• Buildings are responsible for 30% of greenhouse gas emissions. Sustainable buildings are designed to increase their operational efficiency – and decrease their emissions. By utilizing local renewable and recycled materials, fewer materials end up in landfills and the local economy benefits from reducing the extraction and processing of non-localized resources, plus costs are lower.
• There are also savings for the consumer - up to 50% energy; up to 35% carbon emission; up to 40% potable water ; up to 70% solid waste.

In conclusion, all the aspects mentioned above will promote higher building value, a higher return on investment and an enhanced asset value and profit that make a sustainable development into a top class investment opportunity.

Case Study – Oxford Park

Oxford Park is a perfect example of this approach. A fully planned and permitted development by the Oxford Sustainable Group near Tallinn in Estonia, it is the leading sustainable development in Europe featuring 150,000 gross square meters of outstanding commercial, office and retail facilities; residential homes; a top class hotel with convention centre and wellness spa and medical centre and renewable energy from biomass to solar panels. All integrated with economic, social, environmental, local residents, government policy, investment, finance, education, transport, All amenities are in walking distance so buyers have the option to live and work in the same area and many other factors making it the most advanced sustainable and lifestyle development in Europe today.

This master-planned community lies on 56 hectares of land, where a large part of the area is dedicated open space for community parks, forestry and outdoor leisure activities. We have chosen to locate these luxury residences and commercial area alongside a National Park because we are passionate about what this unique location has to offer. Oxford Park is a state-of-an-art multifunctional development, designed by our internationally acknowledged Italian architectural team – the future of sustainable development today.

Obviously there is great international interest for this development and Oxford have been persuaded to open the opportunity to a small number of select investment partners from Alan Forsyth’s property investment group who would like to become involved in a truly world-class project alongside Oxford’s own investment.

For more information and a downloadable PDF brochure of the Oxford Park Development click here

While the market for sustainable investment products is still quite new, it is not surprising that there is great demand for these products. As a case in point, the smaller sustainable products that True Blue Wealth has introduced during the last 6 months have all been oversubscribed by both individual investors and High Net Worth investors.

Sustainable investments are considered to be either in sustainable companies, in sustainable assets or in sustainable developments. A sustainable investment is one in which, according to the UN definition, economic, environmental and social factors are considered. True Blue goes further in its assessment of the products it promotes, with a 360 degree approach to consider all relevant stakeholders so investors will receive a solidly performing investment.

As an example, within the sustainable segment, renewable energy has an important role. The United Nations Economic Commission for Europe has estimated that the current size of the renewable energy market alone is around 160bn Euro and is expected to grow to at least 600bn Euro by 2020.

In addition, there is a very clear argument for sustainable products and companies. Generic statistics show that companies with a sustainable approach have both a longer term investment approach and have consistently outperformed the FTSE 250 average during the last 20 years.

Why do sustainable projects generate a better return? Well, certainly not all products, sustainable or not, generate a good return. However, if applied correctly it is easy to see why the benefits of a good sustainable project will exceed other projects.

First, sustainability means less or zero waste. With less waste, less costs. Sustainability means being cautious with excess and therefore cautious with costs. It means taking a longer term view and therefore the ability to be more flexible and think in more valuable business terms than short term thinking.

Sustainability means thinking how financially and in investment terms the project can be successful. This often means less debt and less risk. These are just a few reasons.

So the argument is clear. What about an actual projects? The below example shows the returns generated from a sustainable/renewable energy biomass project with simplified figures.

Land Purchase 1,000,000 Euro
Planning costs 350,000 Euro
Legal costs 50,000 Euro
DD costs 50,000 Euro
Other costs 50,000 Euro
Sales price 4m Euro
Return (40-15)/15 = 167%

This makes it clear that the correctly chosen sustainable projects can deliver excellent returns during the project lifetime as well as doing good. For most investors this is a powerful combination.

Hadley Barrett - Oxford Sustainable.

by Hadley Barrett

“The current climate gives us great opportunities to earn high returns.

The economic crisis is well documented as “the worst recession since the War”, investors have lost considerable capital and effective real interest rates are -2.5%.

We are in a totally unique position, where governments, institutions, consumers and business are all aligned to demand the same product. Yet there is not enough KNOWLEDGE, EXPERIENCE, PROFESSIONALISM and INVESTMENT on the market to supply it.

New industrializing and emerging nations, such as China, India, Brazil and the Central and Eastern European market are developing a massive energy need not before seen in the world, with a 50% increase needed in the next 20 years. The European demand for energy is high and rapidly increasing.

This suggests strong growth prospects for companies in this market.

i) The European Union and national governments have set strict regulation targets for EU nations to increase their renewable energy production. In some EU states, the target  increase is over 100% of current production by 2020.

ii) Consumers are demanding cheaper, greener, more sustainable energy production and products.

iii) Business is aligning itself with their consumer base and requires sustainable energy solutions

Oxford plans to deliver excellent returns to our investors.

We expect 20% per annum net after costs and fees.

Our projects are intelligently planned and executed and satisfy the growing demand for change in the EU.

Biomass, wind and solar provide the clean, safe, cheap, pollution-free and abundant energy that is demanded, which neither compromises our lifestyle nor the environment in which we live, but which improves on both.

The economic crisis also gives us unique opportunities to purchase land and projects for renewable energy development at low prices not seen for many years.

Oxford has already been involved in the development of renewable energy and sustainable developments in CEE for a number of years.

We:

- are the only CarbonNeutral developer in the CEE region,

- have developed the market leading Oxford 360 degree Sustainability Index,

- have been asked to present, train and help governments, banks, global estate companies during various events in the UK, The Netherlands, the Baltics and the Balkans.

EXPERIENCE

The experience of our team in our target markets is formidable, for instance;

- management of the largest wind park in Finland;

- planned the 4th largest biomass system in Estonia;

- planned the largest biomass system on the Romanian Black Sea coastline;

-more renewable energy projects under development than any other independent developer in the region we are aware of.

INVESTMENT

We put our money where our mouth is and invest our money into our projects.”

*Hadley is over in London on Tuesday 3rd November and is available to meet interested investors during the day, and we will be having a presentation in the evening in Central London.

As discussed this investment is only suitable for high net worth or sophisticated investors.

This investment into a growing market, with a vastly experienced team – can offer excellent potential returns!

For more information, email investments@propertysecrets.net or call us on 0115 985 3963.