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