Case study: Winsford

The previous tenant at this site vacated in June 2022 and alongside the required dilapidations works we completed an extensive refurbishment of the site including the following specification which has significantly improved the building’s ESG credentials and futureproofed the site:

• LED lighting across the warehouse and office space;
• Decarbonisation of the site by removing the gas boiler and replacing with an air source heat pump system; and
• Installing 12 EV charging points for the tenant’s usage.
• Energy efficiency improved to EPC ‘A’ rating

The site also benefits from the installation of solar PV as part of the refurbishment which will be utilised by an incoming tenant.  Any power that isn’t used by the tenant will be sold back to a distribution network operator (“DNO”) to assist with the shortfall of green energy currently available in the UK.  This produces a further revenue stream from the asset with providers offering between 5-20p/kWh for surplus energy produced.

In August 2023 the property was let to Zavvigroup Ltd on a 10 year lease at a rent of £740k pa.

Photos: Winsford before and after refurbishment

Case study: Redditch

The Company received planning permission in June 2022 to redevelop a vacant 59,000 sq ft industrial building constructed in the 1980s into a new 60,000 sq ft industrial/distribution facility.

The new development is built to a high level of environmental specification and certified BREEAM ‘Excellent’ as well as having an Energy Performance rating ‘A’.

In order to achieve this the specification of the development includes:

• A carbon neutral base build;
• EV charging points;
• Solar photovoltaic panels (“PV”) on the south facing roof elevations;
• LED lighting in warehouse and offices;
• Cycle storage;
• Shower facilities; and
• A bat roost to cater for local biodiversity.

Photos: Redditch before and after refurbishment

Case study: Solar Photovoltaic (PV) Installations

There are significant financial and environmental benefits for businesses that invest and install commercial solar panels.

A typical commercial solar panel system will provide electricity for more than 25 years, achieve financial returns of up to 20% per annum and pay back installation costs within approximately 5-years.

We must increase and accelerate the rate at which we generate, store and distribute our energy from solar panels and renewable sources if we are to avoid irreparable damage to our planet.

Solar panels offer a means to considerably reducing your organisations’ carbon footprint. A typical 250kWp solar PV system will offset approximately 64 tonnes of CO2 – the equivalent to driving 155,000 miles in a petrol car.

So far Custodian have originated the installation of 8 solar PV installations and ultimately have a target to install solar PV panels on 100% of industrial and retail warehousing buildings within the portfolio in line with the net zero carbon commitment.

Solar Panels at Trafford Park, Manchester

Case study: Electric Vehicle (EV) Charging

EVs are an important step in sustainable transportation.  Internal combustion engines produce harmful emissions during production and throughout their working life, including a significant amount of carbon dioxide, whereas the batteries in EVs have a smaller carbon footprint during manufacture, are emission-free and EV chargers increasingly use renewable energy. Growing our network of EV chargers, both for public use and tenant only use, is a key way of achieving our carbon reduction targets and improving out properties for tenants.

Installing EV chargers for public use also enhances properties’ occupier appeal by increasing both customer footfall and dwell time.  Office and industrial tenants now expect EV charging as a feature on-site when looking for properties based on their requirements for their EV/hybrid fleet or staff use.

We have a target KPI of installing 4200kW/hr of charging capacity across all retail warehousing and other asset sector by 2025 which would equate to 56 x 75kW chargers available for public use. For our non-public facing sites (typically industrial and office properties) we have set a target of 980kW/hr of capacity to be available for tenants’ use, which translates to 140 x 7kW chargers to be installed.

All of the electricity used to power the charge points across Custodian Property Income REIT assets are from 100% renewable energy sources.

With many towns in the UK introducing clean air zones where a congestion fee is charged for driving through certain areas and the Government banning production of all new petrol or diesel vehicles from 2030, we expect to receive further demand and income for these chargers in the coming years.

EV charger partners

In 2020 we agreed leases with Instavolt allowing it to install 16 ‘rapid’ 50kW EV charging points across eight of our retail parks with two chargers per site and the potential to increase the number of chargers on some of our larger sites when demand increases.  The Company has benefitted from a stable income stream from these chargers and further leases have since been agreed with Instavolt with a total of 21 charging points now installed across 9 retail parks.

Instavolt EV Chargers at Evesham Shopping Park