India’s Green Footprint Sustainable Real Estate’s Growing Momentum in India

� On Point • India’s Green Footprint

Green Schemes Are the Order of the Day

Green buildings are buildings that use fewer resources and have a lesser negative impact on the environment compared to conventional buildings. They use less water, optimise energy efficiency, conserve natural resources and generate less waste without compromising the utility and comfort of occupiers. A green building is designed in such a manner that its resource efficiency is attained not only during its operation and maintenance but also during other stages of its lifecycle (i.e. - construction, redevelopment, and even demolition).

India’s green building footprint has grown considerably over the past six years. Initiatives undertaken by occupiers and developers, as well as those by state and central governments, have driven this progress. Floor area in green buildings grew by over 50% in �009 despite an overall sluggish macro-economic environment.

Figure 1: LEED Certified Green Building Footprint in India*

Source: Indian Green Building Council (IGBC) * Includes office, residential, retail, hotel, educational, hospital and airports.

�004 �008 �009 �01�E0.0�

15�3

68

0

10

�0

30

40

50

60

70

80

Built

Up A

rea (

mn sq

ft)

3 On Point • India’s Green Footprint

Table 1: Major LEED India Certified Green Real Estate Projects in India

Building Type City Project Built Up Area (sq ft) LEED RatingAirport Hyderabad Rajiv Gandhi International Airport 1,�59,378 SilverExhibition Bangalore IMTMA’s Banglore International Center 1,481,040 CertifiedHospital Mumbai Kohinoor Hospital ��7,43� PlatinumHotel Bangalore ITC Royal Gardenia 737,�94 PlatinumOffice

BangaloreBagmane World Technology Center 78�,651 GoldXylem 5�5,000 Gold

ChennaiOlympia Technology Park 1,800,000 GoldRMZ Millenia Business Park 1,717,635 Gold

Gurgaon ITC Green Centre 170,000 PlatinumHyderabad CII-Sohrabji Godrej Green Business Centre �0,000 Platinum

KolkataTechnopolis 775,000 GoldInfinity Benchmark 560,535 Platinum

Mumbai

K. Raheja Corp. C 30 BKC 1�0,000 Gold�4X7 Park 1,800,000 GoldMindspace Airoli, Building No 8 �37,498 GoldHiranandani BG Building 95,000 PlatinumKalpataru Square 3�6,937 Platinum

R&D Lab Hyderabad VIMTA Life Sciences Campus, Genome Valley 39,673 GoldSource: Indian Green Building Council (IGBC)

Green Building Rating Systems in IndiaIndia currently has two major rating systems: LEED India, run by the Indian Green Building Council; and Green Rating for Integrated Habitat Assessment (GRIHA), a system developed by The Energy and Reasearch Institute (TERI) and the Ministry of

Table 3: Major GRIHA Rated Green Real Estate Projects in India

Building Type City Project Built Up Area (sq ft)Educational Institute Kanpur Centre for Environmental Sciences and Engineering- IIT Kanpur 43,947Office Pune Suzlon One Earth 816,17�Source: TERI- Green Rating for Integrated Habitat Assessment (GRIHA)

Table 2: Major Projects Registered for LEED Certification

City Building Type Project Built Up Area (sq ft)

HyderabadCommercial Building-IT Park Building No. 12, Madhapur �,050,000Retail & Commercial RMZ Esplanade �,350,000IT & ITeS SEZ Hill County SEZ - Stage I 1,980,000

Kolkata IT Special Economic Zone (IT SEZ) SP Infocity 1,468,63�

Mumbai

Commercial Raheja Solaris 1,000,000Raheja Platinum 1,300,000Info City �,581,000

Commercial Building-IT Park Building No.9, Herdilia 1,050,000IT & ITeS SEZ Marathon Nexzone-Sanvo 3,000,000Residential Tower Mahindra Splendour 1,400,000

NOIDA IT, SEZ Unitech Infopark SEZ �,568,000

New and Renewable Energy. The GRIHA rating system is slowly strengthening its presence alongside the more popular LEED India. Currently there are only two GRIHA rated completed projects and about 40 are under evaluation.

4 On Point • India’s Green Footprint

Key Corporate Occupiers Setting the PaceWipro, Microsoft, Cognizant, ABN AMRO and TCS, along with other international and domestic corporate occupiers, have either developed, or are developing, energy efficient office spaces or large-scale campuses:• LEED certification norms are being

implemented to manage Wipro’s building infrastructure as part of Wipro’s EcoEye charter (their ecological sustainability program).

• Microsoft has decided to adopt green building techniques during renovation or construction of new buildings in India.

• Other occupiers such as Infosys, Computer Associates and Oracle are also planning to develop green office spaces to leverage the financial and environmental benefits that they provide.

Other sectors such as manufacturing, education,

hospital and hotels are also demanding green spaces. Examples include:• Motorola and Modine Thermal Systems’

factories are operating out of LEED certified green buildings.

• ITC has developed ITC Royal Gardenia, which is a LEED Platinum rated building.

• Lavasa Hotels has developed Hotel Fortune Select Dasve, which is a LEED Silver rated building.

• Educational Institutes such as Hyderabad Institute of Technology and Management in Hyderabad, and Rane Institute for Employee Development in Chennai are operating out of LEED certified green buildings.

• Kohinoor Group has developed Kohinoor Hospital in Mumbai, which is a LEED Platinum rated building.

Table 4: Notable Occupier-Developed Green Buildings in India

Company LEED Rating Location ProjectABN Amro Bank

Platinum Ahmedabad ABN Amro Bank N.V.Gold Chennai ABN Amro Bank - Central Enterprises

Cognizant Gold Coimbatore Cognizant Green CampusMicrosoft Gold Hyderabad Microsoft Building 3TCS Gold Chennai TCS TechnoparkWipro Platinum Gurgaon Wipro Technologies

Gold Hyderabad Wipro Special Economic Zone, Gopannapally,S1 & S2Kochi Wipro Technologies SDB1Noida Fast Track Building 1 & 2, Wipro TechnologiesPune Software Development Block 3

Silver Bangalore Wipro Special Economic Zone (EC) Tower “S2”Wipro Special Economic Zone (SR) - Tower S3

Chennai Wipro Chennai Development Center- SEZ

5 On Point • India’s Green Footprint

Major Developers Commit to a Green Future

Indian Government Doing Its Part to Make Realty Greener

In the small, but growing, demand for green building space, regional and national developers in India have responded with an array of new projects. Construction of new green spaces for office buildings, residential units and retail malls is currently underway in cities throughout the country.

The beginnings of a mindset shift can be observed with major players such as national developer K. Raheja Corp. committing to make all new projects LEED certified. Similarly, State Bank of India is offering a Green Home Loan Scheme with lower interest rates to support green residential projects.

Some noteworthy steps have been taken by central and state authorities in India to support the environment and to help minimise the impact that the real estate industry has upon it.

• The Bureau of Indian Standards has developed the Energy Conservation Building Code (ECBC) which, along with numerous other new policies by the Government of India, will support energy efficiency.

• The Prime Minister of India has released the NAPCC (National Action Plan on Climate Change), which reinforces the objectives of sustainable development and will shape India’s future development policy.

• India’s Ministry of Environment and Forestry has undertaken �4 initiatives related to climate change.

• The Government of India has proposed to develop all of its new

buildings as energy efficient spaces.

• The state governments of Andhra Pradesh, Maharashtra and Karnataka are planning to develop their own green building byelaws.

At the recent Copenhagen Summit (COP 15), India was hailed a climate change deal-maker, a country that takes global climate change issues seriously. As a developing nation, India insisted that carbon commitment pledges remain voluntary, instead of being subject to international enforcement.

The Ministry of Environment and Forestry is confident that India can not only meet its pledge of cutting carbon emissions by �0-�5 % by �0�0 over �005 levels, it can improve upon it. These initiatives clearly indicate that India is on its way to integrated sustainable development.

Table 5: Notable Green Projects Under Construction by Major Developers in India

Developer Project name Project Type LocationK Raheja Corp Private Limited

K Raheja Corp C 30 BKC Office MumbaiCommercial Building at Hindustan Mills Office Mumbai

K Raheja Universal Pvt. Ltd.

Raheja Solaris Office MumbaiRaheja Platinum Office MumbaiRaheja Iridium Office MumbaiInfo City Office Mumbai

Kalpataru Limited Kalpataru Square Office MumbaiBullow IT Park Office Mumbai

Mahindra Lifespace Developers Limited

Mahindra Chloris Residential FaridabadMahindra Splendour Residential MumbaiMahindra Royale Residential Pune

Inorbit Malls (India) Private limited

Alembic Mall Retail VadodaraMakarpura Mall Retail Vadodara

6 On Point • India’s Green Footprint

Case Study - Vimta Labs Vimta Labs, a leading contract research & testing organisation in India, has been providing support to clients in the pharmaceutical and biotechnology industries across the globe since 1984. Although headquartered in Hyderabad, Vimta Labs has a pan-India reach, with offices and laboratories in 4 states and 8 cities. With a staff of over 750 professionals, including nearly 500 scientists across various disciplines of life sciences, the organisation offers testing and contract research services in several fields which include:

• Clinical and pre-clinical studies

• Clinical reference

• Analytical testing

• Advanced molecular biology

• Environmental studies

The organisation is committed to the principles of sustainable development with safety, health and environment being the top most priority areas. Vimta has implemented important green initiatives such as recycling waste water, minimising energy consumption and reducing potable water usage.

In January 2010, Vimta Labs achieved LEED Gold certification through the Indian Green Building Council (IGBC) for a pre-clinical laboratory, which is located within their 11 acre, 210,000 sq ft life sciences campus in Shameerpet, Hyderabad.

Given Vimta Lab’s commitment to environmental protection, the concepts of sustainable design suitable for its building type and location were taken into consideration from the pre-construction planning stage itself. As the building was going to be a clinical testing facility, there were numerous challenges in implementing green building techniques, including limited flexibility in design and budget. The proposed design for the project was also going to increase the energy load of the building. To avert this, Vimta, with the assistance of Jones Lang LaSalle, put in place measures to save energy and water, and reduce waste in the building.

Vimta Labs Headquarters, Hyderabad, India

7 On Point • India’s Green Footprint

Measures Undertaken to Make Vimta Labs Greener

Sustainable Sites• Buses were provided as mass transport for the employees as the alternative to public transport. • Plug points were provided as alternate refueling options for vehicles. • Heat island effect was minimized by reduction of paved areas. 60% of the site was covered by green belt. • Canopy trees were planted in the parking area to reduce the heat radiation from the paved area.

Saving Potable Water• Potable water usage has been reduced by almost 40% in the building due to high efficiency plumbing

fixtures. • Waste water treated in the sewerage treatment plant is used for irrigation purposes. • Rain water harvesting was also implemented in the site which provided water for irrigation and

flushing purposes.

Saving Energy• Energy efficient interior lighting, energy efficient HVAC and chillers, and solar water heaters were used

to reduce energy consumption. • A triple glazing process was used on the building to reduce the heat intake considerably.• Solar reflective paints were used on the roof to reduce heat island effect in the building.

Effective Resource Utilization• Best practices in solid waste management were used for waste segregation. 95% of the construction

waste was diverted from the site efficiently. • There was increased use of recycled and refurbished materials in the building. • 50% of the materials were sourced from within 500 miles from the project site to support the local

economy and minimize transportation costs.

Enhanced Indoor Air Quality• Walls were provided with air gaps to control indoor climate.• CO� censors were used to monitor and enhance the indoor air quality.• Low VOC paints and MERV -17 filters used to improve indoor air quality.• Ventilation rates were increased by 30%.

Green Achievements at Vimta Labs

Energy savings ��.5 %

Potable Water conservation 40 %

Resource Reuse 6%

Materials with recycle content 1�%

Source: Jones Lang LaSalle-Energy & Sustainability Services

Interior Lighting�0%

HVAC System�5%

High Efficiency Chillers

�5%

Triple Glazing�6%

Solat Water Heating�%

SRI Paint Insulation�%

Energy Saving Parameters at Vimta Labs

8 On Point • India’s Green Footprint

Energy & Sustainability ServicesBuilding sustainable solutionsDeveloped and developing economies are confronting the dual challenge of a growing demand for diminishing resources combined with the need to reduce environmental impact.

Sustainability has increasingly become a crucial factor in the assessment of real estate options. There is a growing awareness from property owners and occupiers that sustainability is a key factor in evaluating asset potential or reporting on asset performance.

Jones Lang LaSalle stays ahead of global trends to ensure that our clients are in a position to embrace and benefit from change in the ‘Green’ domain

Jones Lang LaSalle’s Energy & Sustainability Services provides practical advice backed up by a range of sustainability services. This enables our clients to make sound commercial decisions that support their sustainability objectives.

Our clients benefit from our access to regional and global best practices in sustainability as well as our hands-on experience with day-to-day building management topped with operational and cultural challenges that face today’s real estate decision makers.

Driving your successful outcomesJones Lang LaSalle offers a range of services for new, existing, or refurbishment projects to optimize expenditure and maximize the results of sustainability initiatives.

Irrespective of a building’s lifecycle, each element can be improved by applying skills derived from the ongoing management of many premium properties across Asia Pacific.

Our approach is based on the experience gained within our Property and Asset Management and Integrated Facilities Management teams that currently manage close to 100 million sq ft in India in the commercial, retail, and industrial space across the region.

Our services can be applied at various points of a building’s lifecycle. Our expertise can be leveraged to work in harmony with existing design and construction teams to provide specialist insight into features that impact final sustainability outcomes. These services include the following:

Design and construction consultingCommissioning assistanceSustainability and energy managementEnergy and water audits, assessments, and improvement plansAsset acquisition profiling and repositioning adviceCapital expenditure reviewRepairs and maintenance review

•••••••

COPYRIGHT © 2010 JONES LANG LASALLE. All rights reserved. No part of this publication may be published without prior written permission from Jones Lang LaSalle. The information in this publication should be regarded solely as a general guide. While care has been taken in its preparation no representation is made or responsibility accepted for the accuracy of the whole or any part. We stress that forecasting is a problematical exercise which at best should be regarded as an indicative assessment of possibilities rather than absolute certainties. The process of making forward projections involves assumptions regarding numerous variables which are acutely sensitive to changing conditions, variations in any one of which may significantly affect the outcome, and we draw your attention to this factor.

Jones Lang LaSalle offices

Bangalore tel +91 80 4118�900 fax +91 80 4118�901

Chennai tel +91 44 4�993000 fax +91 44 4�993001

Chandigarh tel +91 17� 3047651 fax +91 17� 3044�1�

Coimbatoretel +91 4�� �544433 fax +91 4�� �5444��

Delhitel +91 11 43317070 fax +91 11 43317071

Gurgaon tel +91 1�4 4605000 fax +91 1�4 4605001

Hyderabad tel +91 40 40409100 fax +91 40 40409101

Kochi tel +91 484 3018654 fax +91 484 40�9394

Kolkata tel +91 33 ���73�93 fax +91 33 ���73�97

Mumbai (Parel)tel +91 �� �48�8400 fax +91 �� �49413�1

Mumbai (Lower Parel) tel +91 �� 66581000 fax +91 �� 66581003

Pune tel +91 �0 40196100 fax +91 �0 40196101

Real Estate Intelligence Service (REIS) India is a subscription based research service designed to provide you with cutting edge insights into India’s diverse and challenging real estate markets through collation, analysis and forecasts of property market indicators and trends across all major Indian markets across various real estate asset classes - office, retail, residential. REIS empowers you with consistent and complete market data and analyses for all real estate indicators by specific micro markets. It is supplemented by value added services including client briefings, presentations and rapid market updates. For more details, contact, Abhishek Kiran Gupta - abhishekkiran.gupta@ap.jll.com or Avinash Mirchandani - avinash.mirchandani@ap.jll.com

About Jones Lang LaSalleJones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of USD2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately USD38 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 18,500 employees operating in 75 offices in 13 countries across the region.

About Jones Lang LaSalle India Jones Lang LaSalle is India’s premiere and largest professional services firm specializing in real estate. With an extensive geographic footprint across ten cities (Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over 3000, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, consultancy, transactions, project and development services, integrated facility management, property and asset management, capital markets, residential, hotels and retail advisory. For further information, please visit www.joneslanglasalle.co.in

We would like to acknowledge the contributions of Trivita Roy, Senior Researcher, to this report.

Kumar Ramaiah Asst. Vice President Energy & Sustainability Services kumar.ramaiah@ap.jll.com

For more information, please contact

Rajat Malhotra Head - Engineering & Operations Solutions, West Asia Integrated Facilities Management rajat.malhotra@ap.jll.com