42 property
Will you be overheating this year?
Environmental legislation may mean your air-conditioning system needs to be replaced by the end of the year, writes Edward Neaves, partner, Vail Williams LLP
If you are a landlord or a tenant with an air- conditioning system that contains R22 refrigerants in your building then you need a plan because the use of this HCFC (hydro chlorofluorocarbon refrigerant) is due to be all but eliminated from January 1, 2015.
After January 1 it will be illegal to use or handle recycled refrigerant in anyway. Most repairs on an R22 system will therefore not be possible and the whole system may well need to be replaced. However, if the system does not require repairs that involve handling or topping the R22 up then it is possible that the system can continue to be used after January 1.
What does this mean if you are a landlord?
You will not want a vacant building with an R22 air-conditioning system. Finding a tenant willing to take on the responsibility of replacing the system will be almost impossible. Therefore if you already have a tenant in occupation you need to have a plan to ensure the tenant contributes reasonably to the cost of replacement. However, subject to the
ISG wins £8m Green Park project
ISG has been awarded its fifth project at the 95- acre Green Park business community in Reading, taking a circa £8 million scheme to refurbish and reconfigure a commercial office building for owners Oxford Properties.
ISG recently relocated its Reading office to Green Park following continued growth in opportunities within the Thames Valley and M4 corridor.
This latest win sees the contractor carry out a comprehensive fit-out and reconfiguration of the five-storey structure at 450 South Oak Way, and deliver 102,000 sq ft of Grade A office accommodation, providing flexible options for single or multi-tenanted occupation. This refurbishment follows the successful completion of similar building upgrades at the Park, and forms part of Oxford Properties’ long-term asset management strategy to address the supply- demand gap of Grade A space in the Thames Valley market.
ISG will undertake major structural alterations as part of this project, forming a new entrance and improved open lobby area, and constructing a two-storey cantilevered extension at level three. Four link bridges will be installed across each of the upper levels within the main atrium, and a stylish feature staircase will provide access from ground to first floor levels.
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terms of the lease in place, you may not be able to do that immediately and it may not be that easy.
What does this mean if you are a tenant?
As mentioned above, your landlord will want the R22 system replaced as soon as possible and the costs covered by you either directly, if it is your responsibility, or indirectly through a service charge. This is where the tenant needs to have a plan. A tenant needs to know what liabilities they have under their lease and, where possible, take the necessary action to avoid these costs or delay the replacement if this is not required immediately.
Who should pay particular attention to this?
If there is an R22 system in the building and the lease expires anytime between now or shortly after January 1 then whether you are a landlord or a tenant you need to understand your lease liabilities and the options available to you. Also, tenants contemplating taking a lease on a new building during this period should take care to avoid this R22 issue.
Details: Edward Neaves 07786-736077
eneaves@vailwilliams.com www.vailwilliams.com
We anticipate there will be an increase in disputes over the next 12 months between landlords and tenants over whether R22 systems are actually in disrepair and therefore whether they need replacing immediately. Subject to the circumstances of each case, timings could be crucial and action taken now to maintain an R22 system may make the difference between a landlord or a tenant paying the bill.
ISG is targeting a BREEAM Excellent environmental performance rating for the refurbished office building through the use of high-specification building materials and the installation of highly-efficient mechanical and electrical services. Externally, the project includes the provision of attractive hard and soft landscaping features, resurfacing the adjacent car park and the construction of a new cycle store featuring roof-mounted photovoltaic panels.
Paul Cossell, managing director of ISG’s fit-out and engineering services business, commented:
“We are seeing continuing growth in the volume and scale of project opportunities within the region as businesses take advantage of reduced set-up costs and the excellent transport and communications infrastructure. Our Reading office continues to service ISG’s longstanding international customer base, but is also making major inroads within the regional office market as owners, developers and occupiers recognise the significant benefit of working with a highly experienced and innovative sector specialist.”
Details:
www.isgplc.com THE BUSINESS MAGAZINE – THAMES VALLEY – MARCH 2014
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