GREEN ANNUAL PROPERTY INDEX
Now in its fifth year, the MSCI South African Green Annual Property Index continues to support the investment case for green buildings in the commercial property sector. Released annually in conjunction with the Green Building Council of South Africa (GBCSA) and sponsored by Growthpoint Properties, the index provides an independent, globally consistent view on the investment performance of green certified and non-certified offices.
At the end of 2020, the index sample comprised 289 prime and A grade office properties, of which 139 were green-certified buildings. The index’s findings continue to strongly support the case for investing in green-certified buildings, providing proof that these buildings are better placed to attract and retain tenants, and are cheaper to operate. As the owner of the biggest portfolio of green-certified office buildings in Africa, this puts Growthpoint in a strong position for the future.
After five years of tracking green-certified buildings, the MSCI can see real evidence showing that green-certified buildings provide higher returns to the investor because they have been more defensive through the economic downturn and the Covid crisis, according to Eileen Andrew, vice president of the MSCI.
Georgina Smit, head of technical at the GBCSA, agrees, saying that for investors, the results also emphasise the positive role that green-certified buildings can play within the broader investing context.