Gulf Construction Online - Renovation pays back, says architect

Facilities Management

Renovation ... gives building owners the financial edge.

Renovation pays back, says architect

01 August 2009

FARNEK Avireal, a leading UAE facilities management company, urges owners of old buildings to consider renovating their properties to gain a commercial advantage in today’s tough economic scenario while also improving their green credentials.
The company is providing cost-effective and energy-saving redesigns to make older buildings leaner, meaner and greener.
Mohamed Abdelhamied, divisional manager design and build of Farnek Avireal, says: “With competition for business likely to remain fierce in both the commercial and residential property sector for the foreseeable future, owners of older buildings will find themselves at a commercial disadvantage if they don’t consider renovation.”
The architect says professional renovation of an older building, carried out using environment-friendly products and incorporating the latest energy saving technologies can make a dramatic impact on the building’s ‘carbon footprint’.”
Abdelhamied, who has a master’s in architecture from the Swiss Federal Institute of Technology in Zurich, goes on to say: “Apart from improving a company’s green credentials, well-renovated buildings – whether they are hotels, offices, apartment or villas – are also attractive to tenants and capable of sustaining higher returns. Owners must renovate to accumulate.”
In general, renovation is of three types, lifestyle, retrofit, and maintenance and repair. He elaborates:
• Maintenance and repair protects the investment made in buildings such as carpets, flooring and bathroom fittings. This can maintain the property’s asset value and reduce depreciation – with 50 per cent to 75 per cent payback;
• Retrofit projects usually focus on a building’s shell or mechanical systems. Examples are upgrading insulation, air-conditioning and replacing kitchens. This can help landlords to either sell or rent their buildings with added value of up to 30 per cent. There can be between 75 per cent and 100 per cent payback here;
• Lifestyle renovations improve buildings and way of life. They might involve an extra room or converting unused space into living quarters. While almost any renovation will add to or, at least, protect the equity in a building, kitchen and bathroom renovations and painting normally provide the greatest payback.
“Improving the life cycle of buildings is our specialty,” says Abdelhamied, adding, “Our company, which maintains more than 1,000 properties in Dubai alone, has been involved in a number of major renovation projects as owners look to maximise their returns and protect their long-term investment.”
A recent example was a 54-villa estate where the buildings are more than 20 years old. They are now not only more efficient but also more attractive, he says.
“Over time, the money saved on systems such as more efficient air conditioning, lighting and plumbing may actually pay for the upgrades. Safety also pays. Insurance companies may decrease premiums when wiring or fire prevention has been improved or a security system is added.”
“In tougher economic climate ensuring buildings are efficient and desirable can keep companies ahead of the competition,” concludes Abdelhamied.
Farnek Avireal is a joint venture company between UAE’s Khalifa Juma Al Nabooda Group and Avireal of Switzerland. The company has grown into one of the region’s foremost property and facilities management outsourcing companies.