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Nabarro, Eversheds and Pinsent Masons join forces in radical move for the real estate sector
23 April 2009
Mayor of London supports green lease initiative to reduce environmental impact of real estate
Nabarro LLP, Eversheds LLP and Pinsent Masons have teamed up to advise the Better Buildings Partnership (BBP), on the production of a comprehensive toolkit which looks set to shape the future of commercial property leases.
The BBP is a group of leading property owners bought together by the Mayor of London and the LDA to lead the property industry in achieving CO2 reductions. They include Canary Wharf Group, Workspace Group, The British Land Company, Grosvenor, Hermes Real Estate, Land Securities Group, Legal and General, London Development Agency, Transport for London, Hammerson, and Quintain Estates & Developments.
In an effort to reach the Mayor’s target of cutting carbon dioxide emissions by 60% by 2025 and the Government’s target of 80% by 2050, the green lease toolkit was produced to drive CO2 savings in commercial property. It sets out best practice guidance and model agreements to enable owners and occupiers to agree and implement carbon, energy, waste and water reduction strategies which best fit with the circumstances of individual properties.
The three law firms, led by partner Graham Lust at Nabarro, solicitor Becky Clissmann at Eversheds and partner Siobhan Cross at Pinsent Masons, advised BBP on the production of model Green Lease clauses and a Memorandum of Understanding in relation to green leases, which create an appropriate legal framework for landlords and tenants to agree and implement steps to make their commercial properties more sustainable.
Commenting on the initiative, real estate partner, Graham Lust, said: “This is a landmark scheme for the real estate sector and one that will make a real difference to the reduction of carbon emissions. It’s great that so many large companies have already signed up to the scheme, which encourages a solid partnership between landlord and tenants to reduce environmental impact.”
The members of the BBP will be trialling the new toolkit within their own portfolios in the coming months, and organisations that have already signed green leases include Philips Electronics, Marks & Spencer, Asda, Costa Coffee, WH Smith and B&Q. hurleypalmerflatt, Henderson Global Investors, Mayer Brown and Reed Smith also intend to work with the new BBP Memorandum of Understanding alongside their current lease agreements.
Siobhan Cross, property partner at Pinsent Masons, said: "The recommendations of the BBP cut through the obstacles in existing lease structures to reducing the environmental impact of buildings and provide a straightforward and practical way for landlords and tenants to start making a difference in this crucially important area."
Becky Clissmann, a member of the Environment Team at Eversheds, said: “Given the targets in the Climate Change Act and the introduction of the Carbon Reduction Commitment in 2010, the property sector will need to play its part and reduce carbon emissions related to buildings - this toolkit has been designed to provide practical help to landlords, tenants and their advisers in setting up a framework that enables carbon emission reductions to take place.”
If you would like any further information or have any queries please contact:
Graham Lust
Partner, Nabarro LLP
T +44 (0)20 7524 6200
g.lust@nabarro.com
