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Jenney Pidgeon

Henderson and M&S working together to create more sustainable buildings

We have signed a new ‘green’ Memoranda of Understanding with M&S, covering ten assets across three of our Funds where M&S is a tenant.

We have signed a new ‘green’ Memoranda of Understanding with M&S, covering ten assets across three of our Funds where M&S is a tenant.

Green leases and MoUs are nothing new in the industry – Henderson introduced ‘green’ clauses into our UK leases more than two years ago – but this is the first time that such a collaboration has been led by a retailer and agreed across 70 buildings by nine leading landlords, all members of the Better Buildings Partnership.

AsClem Constantine, Director of Property at M&S, said: “Unfortunately, big carbon reductions from the UK’s building stock cannot come only from shiny new eco stores. 70% of current commercial buildings will still exist in 2050, so if we are genuinely going to tackle the problem we have to invest in eco solutions for existing buildings. Currently it can be difficult for landlords and tenants to work together when it comes to a building’s environmental performance ... Green leasing changes this situation as it provides the framework within which both can work together. And both will benefit; a store with a reduced environmental impact and lower costs is more marketable for landlords and more cost effective for tenants to occupy – a genuine win, win.”

Green leases and MoUs are just one method that Henderson is using to try to break down the barriers to closer landlord tenant collaboration, opening the door towards more sharing of information, environmental initiatives and long term goals. As the requirements to meet planners’ BREEAM standards, achieve higher EPC ratings, reduce occupational costs and improve the energy efficiency of our buildings increase, it will be interesting to see what the next step in ever-closer landlord tenant relationships looks like.