Reused construction materials get a demonstrable monetary value
Amsterdam, February 6th – JLL, New Horizon , NIBE and Grant Thornton have developed a circular valuation model: Wearthy Taxatie [Wearthy Valuation]. This model provides insight into the value of the raw materials and materials used in existing buildings. From now on, every valuation carried out by JLL of public, municipal and commercial real estate will include the Wearthy Taxatie as standard.
The construction and property sectors are major drivers of the earning capacity of the Dutch economy. However, these are among the most raw materials-intensive sectors. The transition to circular property offers opportunities to reduce the environmental impact of the property sector.. Many parties are now looking at circular new construction as a way of reducing their consumption of raw materials. Significant gains can be made through smarter, more efficient use of raw materials in existing buildings, but this requires insight. Providing this insight into the raw materials used within buildings and what their monetary value is represents a significant challenge.
The valuation model developed provides concrete insights given in figures, while at the same time increasing awareness among building owners. Carrying out valuations which include the Wearthy Taxatie can help owners of properties make better decisions; a more than worthwhile exercise for owners, as wasting raw materials means wasting a portion of the financial value of a property.
Wearthy Taxatie is the second ‘Wearthy product’ to be developed. The Wearthy MPG [building environmental performance] improver launched previously helps the construction sector achieve more circular realisation during the design phase for new buildings.
Johan Vonck, Lead Director – Valuation Advisory JLL Nederland: ‘JLL embraces and supports initiatives that increase the circular value of property. Until now, it has proved difficult to achieve this when carrying out valuations in practice. Thanks to this new Wearthy valuation model, the value of reused and raw materials can be made clear, giving owners the ability to reap the potential rewards from this circular impact. Therefore, the model stimulates more sustainable real estate portfolios and improves our built environment.’
Michel Baars, owner of New Horizon: ‘Reaping the rewards of circular impact is achieved by applying the principles of Urban Mining. ‘Harvesting’ instead of ‘demolishing’ makes high-value reuse possible and releases the inherent value within. Furthermore, applying this form of reuse also allows us to reduce the harm to the environment caused by standard demolition and construction. This means there are now several ways in which a building can be considered a valuable donor building. In cooperation with its partners in the Urban Mining Collective, New Horizon gives these raw materials utility as circular construction products and solutions for renovation and new-build projects.’
Mantijn van Leeuwen, managing director NIBE: ‘Today, raw materials prices don’t take any external effects into account. When we consider the impact of their extraction, production and processing on the environment, raw materials are clearly undervalued. The expectation is that this will change. Given the pressures on the climate and the environment, as well as management of emissions caused by humans, it is essential that external effects be included in the pricing of raw materials.’
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of more than 93,000 as of September 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
