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News release

Mandatory Disclosure – It’s time for full disclosure on 1 November 2011

Jones Lang LaSalle releases Update Paper, outlining 4 step process for compliance under the Commercial Building Disclosure Program


AUSTRALIA, 25 OCTOBER 2011 – The Commercial Building Disclosure Program, also known as ‘Mandatory Disclosure’, will take full effect from 1 November, 2011 as the transitional period of phasing into Australian law comes to an end.
 
The program is a major change to the way office buildings are sold or leased.  It requires that during the sale, lease or sub-lease of disclosure affected commercial office space, the energy efficiency be disclosed through a Building Energy Efficiency Certificate (BEEC).
 
The BEEC consists of 3 elements – a NABERS Energy rating, Energy efficiency guidance and a Tenancy Lighting Assessment.  Only the NABERS Energy rating was required to be disclosed during the 12-month transition period (from 1 November 2010).
 
Director of Sustainability at Jones Lang LaSalle, Joel Quintal said under the new disclosure obligations, an office space greater than 2,000 square metres that does not satisfy the conditions for an exception or exemption cannot be offered for sale or lease without a BEEC.
 
Jones Lang LaSalle has released a Mandatory Disclosure Update Paper to advise what needs to be disclosed from 1 November 2011. It advises 4 steps to follow to comply with the new disclosure obligations.
 
The process to follow when selling or leasing a disclosure affected area:
 
1. Determine the eligibility of the area under the Building Energy Efficiency Disclosure Act (2010).
 
2. Review the expiry dates of your NABERS Energy rating and Tenancy Lighting Assessment. If you do not have a current NABERS Energy rating and a current Tenancy Lighting Assessment for the space, appoint an accredited assessor to undertake these ratings. Allow 4-8 weeks for NABERS Energy ratings and Tenancy Lighting Assessments.
 
3. Submit an application to Department of Climate Change and Energy Efficiency (DCCEE) for a BEEC. The application must be submitted by a CBD Accredited Assessor and must include the NABERS Energy rating assessment number and the Tenancy Lighting Assessment number(s). Allow up to 4 weeks to process.
 
4. When you have a registered BEEC, commence transaction on the disclosure affected area.

Mr Quintal said the new disclosure obligations would provide benefits for landlords, tenants and investors alike.
 
“Landlords can use this opportunity to market the energy efficiency features of their properties.  More efficient assets will attract the growing number of tenants that have sustainability on their corporate agenda.
 
“Tenants can use the BEEC to make informed decisions on the space they are planning to occupy.  The BEEC will tell you how efficient the building is, which will have an impact on operating budgets.
 
“Investors can use this information to assess the liquidity of their assets as sustainability considerations become part of investment due diligence,” said Mr Quintal.