Maintenance building proceeding - Via Pisani 15 Case Study, Milan

VIA PISANI 15

MAINTENANCE BUILDING PROCEEDINGS AND METHODS Prof. Dejaco Mario Claudio Prof. Moretti Nicola

GROUP 9 Carrara Marco Cifarelli Dario Dealexandris Andrea Isella Marco Gaglione Giacomo ArashYazdan Zhou Wubo HuJingxuan Management of Built Environment Academic Year 2018 /2019

INDEX

1. ABSTRACT……………………………..…………………………………...……..…3 2. STATE OF ART ANALYSIS 2.1

Property identification……………………………..…………………...4

2.2

Construction details…………………………..………………………...4 2.3.1 Exterior walls…………...………………………………….5 2.3.2 Current HVAC sytem type……………..…………….......6 2.3.3 Energy Simulation…………………………..…………...6

2.4

Economic evaluation …………………………..…………………........8

3. CRITICALITIES & PROPOSALS 3.1

Criticalities, Solutions and Goals…………………………..…...……..9

3.2

Scheme objective of the renovation………..……………………...…9

3.3

Logical Path…………………………..………………………..…….....10

3.4

First Scenario…………………………..………………………….…...10

3.5

Second Scenario…………………………..……………………..........11

4. ENERGY EFFICIENCY IMPROVEMENTS 4.1

New HVAC System…………………………..………………………...13

4.2

Energy Simulation…………………………..………………...…….…13

5. MAINTENANCE……………………………………………………….………..…15 5.1

Method Description…………………………..…………………..…..16

5.2

Driver of the solutions…………………………..……..……………...16

5.3

Result …………..…………………………..…………………………...17

5.4

Investment evaluation…………………………………………….…..18

6. COMPARED RESULTS …………………………..……………………..……..…..18 7. References……………………………………………………………………22 8. Attachments………………………………………………………………….22

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1. ABSTRACT

This document intends to present the renovation project of the property in exam, taking particular attention to the Maintenance of the building, focusing on its influence on the Market Value.

The State of Art’s analysis, exposed in the first chapter, aims to identify the main characteristics of the building, allowing to have a detailed view and comprehension of the functioning and the state of obsolescence of the elements that compose it. The purpose of the State

of

Art analysis

therefore,

is

to

identify

the main

criticalities concerning the architectonic elements, the plant systems and the energy efficiency through the simulation of the annual consumption of the building. Starting from the aforementioned critical elements, some operations have been identified to improve those conditions and, the combination of those interventions has allowed to hypothesize two different scenarios. The reference drivers used for

the economic

analysis

are: yearly

rent,

initial

investment, yearly maintenance costs, annual energy consumption and the current open market value. The conclusion of the research is a comparison between the state of art, taken as reference benchmark, and the two scenarios developed, in order to assess the best hypothesis. It’s important to remind that for an optimal understanding of the whole analysis, it’s strictly advisable to consult the attachments.

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2. STATE OF ART ANALYSIS 2.1

Property Identification

The property in question, located in Via Vittorio Pisani 15 in Milan, consists of 2 underground floors - used for parking and technical rooms -and 8 floors above ground. Morphologically it can be framed as a building with an L-shaped plan, composed of two blocks with different heights they take place onto the curtains facing the street. It is a compact urban curtain fabric and with a SLP of about 4459 square meters. The prevalent usage destination is Tertiary with part of the ground floor area assigned to Commercial activities. The facade along via Pisani has been recently renewed in 2011 with a thermal insulation system, differently from the courtyard facade, which is more dated both from the design and performance point of view.

On the underground floors there is a mechanized parking system of about 60 parking spaces and 13 external parking areas.

Fig. 1 - View of the building. Source: Google maps reworked by the authors

Fig. 2 - Floors and surfaces - Source: Technical documents

2.2 Construction Details From an on-site evaluation of the building, the presence of a binding structural order it’s easily visible from the design of the facades.

The original structure was made of high edge and a vertical distribution system with discontinuous pillar. This particular structure has a visual impact on the facade with evidence of the opaque sub-base and opaque vertical pillars.

4

The overall structure is based on the reinforced concrete frame structure. The foundations are made by a superficial type consisting of plinths and foundation beams. Information concerning the structural details is reported in the original construction drawings.

Fig. 3, 4 - Sections of the building – Source: technical documents

.

2.3 ENERGY EFFICIENCY ANALYSIS 2.3.1 Exterior Walls, Analysis of U-value Through the analysis of the external walls, making-up the front-side and the courtyard facades of the building, it has been calculated two relevant u-values respectively equal to “0.27 W/m2k” for the front-side one and “0.45 W/m2k” for the courtyard one, this last one is higher than recommended value “0.3 W/m2k” [referred to standard L1A].

Fig.5 - Detailed section of wall components and internal partitions of state of art – Source: made by the authors

5

The above shown section, which is the state of art, is the starting point for elaborate a good proposal, taking care about all the possible leakages and strengths of any action; about the installation of a thermal insulation layer due to the leak of technical performances of the backyard facade, it has been thought to locate it external rather than internal (considering both economic and technical point of view) due to the eventual loss of internal walkable surface even if the external facade could change in shape. Finally, among existing insulations with various materials it was decided to choose EPS insulation due to its reasonable advantages comparable to other ones as described in below tables. Moreover, by exploiting this material the u-value lower than 0.3 W/m2k so it’s below the benchmark.

2.3.2 Current HVAC System Type – VRF Plus Boiler

Fig.6 – VRF Plus Boiler System

Variable refrigerant flow (VRF) system along with boiler package has been currently used. VRF systems consist mainly of a compressor unit, also known as outdoor unit, and several indoor fan coil units. The compressor unit is normally installed on the roof or in other suitable building attached outdoor area. It provides cooled and heated refrigerant through relatively small piping for space cooling and space heating.

Typically, VRF systems are air-cooled systems, but they also come as water-cooled system.

Current System Disadvantages 1. Cooling heating simultaneously is limited 2. Limited BMS System and integration with IBMS System is not possible 3. Need to increase tonnage for longer piping 4. Standby system is also limited for critical areas

2.3.3 Energy Simulation The objective of the dynamic energy simulation of the building aimed at: 1. Estimate the energy consumption and distribution of buildings during their use when fully operational; 2. Represent the microclimatic comfort conditions of the work environments.

3. Application of integrate the BIM&ENERGY SIMULATION process

6

The following table (Fi shows the input data used for the energy simulation and the software tool used.

In order to perform the simulation, we have used weather data of Milan (Fig.8). We use Revit model into the software Designbuilder, which has two way. First is use GBXML model as a transfer model, second is use the Designbuilder Plugin in Reivt. For this project, we chose the First one.

Report Name: Phase at Energy service Building Type: Calculating Building Area:

Simulation Software: Weather Data: Weather Source From: ASHRAE Climate Zone: Standard use

Energy Simulation for Project VP15 Yearly simulation Office Building Total building Area :7478.41 m2 Net Conditioned Area:5054.60 m2 Unconditioned Building Area: 2423.81 m2 Designbuilder (EnergyPlus 8.6) MILANO/MALPENSA-160660 ASHRAE/IGDG 4A ASHRAE 90.1-2010 ASHRAE 209-2018

Fig.7 – Summary report of Designbuilder energy simulation. Source: made by the authors

Fig.8 Wind speed weather data used for the simulation. For all parameters use, see attach n. 6, 7 , 8, 9

Fig. 9 – From Revit model to Designbuilder – Attachment n. 6, 7, 8, 9

STATE OF ART Yearly Energy Consumption

From the Fig. 10 we can see that the Heating, Cooling, Fans and Interior lighting are the big part of energy consumption in the FANS 17304,582 exciting building. After the analysis we found that the INTERIOR EQUIPMENT 41025,945 exciting building HVAC system is the main problem of the energy INTEIOR LIGHTING 20262,96 consumption, and also lack of the control system, the interior COOLING 21276,108 lighting became very big. So, we did the new proposal to improve HEATING 35126,535 these two parts, which as we said 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 before, change to a more efficient Fig. 10 – State of art Yearly Consumption, Attachment n. 5 HVAC system and lighting control system.

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2.4 Economic Evaluation We implemented the Technical part with an Economic point of view, in order to show the feasibility of our interventions. To do that, we decided to use as a “supervisor” of our case study the Current Open Market Value, calculated through the composition of a Discounted Cash Flow over a duration of 10 years.

We’ve decided to develop three different Open Market Values (one for the state of art; one for each of our two proposals; see Attachment XX) from those is be possible to understand the composition of each scenario and make a clear comparison.

The values used for the composition of the Current Market Value have been calculated starting from three main categories: income, costs and revenue.

In the Income part we’ve used the Yearly rent, calculated through an average value based on various indirect source (BorsinoImmobiliare, AgenziadelleEntrate, Immobiliare.it) multiplied for the Commercial area (calculated considering the different parameters of incidence, given by AgenziadelleEntrate, Attachment XX paper: Misure Via Pisani).

The Costs part include a 25 years average Maintenance cost (Attachment XX), Energy consumption costs (Attachment XX), Renovation costs (Attachment XX), Vacancy costs, Administration costs, Safety costs, Insurance cost and at last Tax. After calculating the Yearly Net Cash Flow of 10 years, it’s been discounted, and then it’s been calculated the Current Open Market Value.

Here is possible to see the summarized table for the economic evaluation of the State of Art, and next, after the presentation of our two proposal, it will be used as a comparison.

STATE OF ART Yearly Rent Energy consumption 25 yrs Average Maintenance costs

€ € €

900.720,20 135.087,28 110.762,48

Current Open Market Value

€ 14.320.088,74

Fig. 11 - State of art Summary – Attachment n. 2 – Source made by the authors

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3. CRITICALITIES & PROPOSALS

3.1 Criticalities, Solutions, Goals Starting from the general analysis of the state of art some criticalities emerged we have started thinking about possible solutions in order to solve the building issues.

COURTYARD FACADE CRITICAL PERFORMANCES

REFURBISHMENT OF THE COURTYARD FACADE - NEW INSULATION SYSTEM

REDUCE COST FOR ENERGY CONSUMPTION

-

INCREASE MARKET VALUE

-

UPGRADE ENERGY CLASS

-

REDUCE COSTS ENERGY CONSUMPTION

OPEN SPACE DESIGN:

-

INCREASE OF LEASING APPEAL

-

DISMISSION OF INTERNAL PARTITIONS

-

MORE FLEXIBILITY

-

INSTALLATION OF MOVABLE PARTITIONS

-

INCREASE USER SATISFACTION

-

NEW FLOORING

-

REDUCE MAINTENANCE COSTS

-

DISMISSISSION OF SHAFT WALL

-

INCREASE OF USABLE SURFACE

SUBSTITUTION OF WINDOWS

INSTALLATION OF GROUND SOURCE HEAT PUMP HVAC SYSTEM

LOW LEVEL OF FLEXIBILITY DUE TO THE PERMANENT LAYOUT OF THE INTERNAL SPACES

1

-

ENERGY EFFICIENCY - D CLASS - 127,5 kWh/m2

SCENARIO

RESULTS

SOLUTIONS

CRITICALITIES

2

Fig. 12 – criticalities, solutions, results summary – Source: made by the authors

3.2 Scheme objective of the renovation The renovation of the building is developed according on the energetic efficiency and then on the enlargement of the space. As analysed, the energetic simulation highlights considerable inefficient consumption, so it needs a renovation on problematic elements. Afterwards, the

QUALITY OF THE BUILDING

LEVELS OF VALUE

Better quality of

Reshape of the layout

Flexibility

Intervention on the external wall package

Rent/sqm

Steppable Area

Finishes

Better Tenants* (High quality of the building facilities meets demand of market trend)

Stability of rent

Better Maintenance

Operating and maintenance cost

Less expenses

Rent

*Class A buildings (83,300 square metres) are confirmed to be the most sought after in T4, concentrating more than 75% of take- up. The search for quality properties appears to be a common trend in the office market in Milan and Europe.

Increase energy efficiency

Prime location

Risk

Discount Rate

CAP Rate

Income (NOI)

Fig. 13 – Scheme objective of the renovation – Source: made by the authors

Creditworthy tenants

PRICE / VALUE

9

internal space is thought able to create more revenue. The concept of work space follows the trend of open-space and its flexibility. The last column of the below scheme objective represented by the risk analysis is outside of the project objectives therefore we consider the discount rate as given by the market.

3.3 Logical Path In short, the design intent is the reduction of operating expenses, to be achieved through the study of technical solutions that reduce the costs for maintenance and energy consumption.

These two components of operating expenses represent the two main branches of the project.

Finally, we have chosen to verify the effectiveness of the project by using financial techniques since in this way it is possible to unify the results obtained from the two areas of intervention, which act on the functional characteristics of the building elements that would not otherwise be comparable.

OBJECTIVES INCREASE MARKET VALUE by REDUCING OPERATING EXPENSES

MAINTENANCE COSTS

ENERGY EXPENDITURES

VERIFICATION TOOLS NET PRESENT VALUE INVESTMENT PAYBACK

Fig. 14 – Project Logic Scheme - source made by the authors.

3.4 First Scenario The first scenario designed aims to solve the problems related to thermal transmittance and energy consumption emerged from the state of art analysis by renewing the courtyard facade of the building accordingly with the actual law performance level.

A new insulation system made up of EPS panels, appropriately sized was studied respecting the actual law performance level. The renewal includes the dismission of the actual windows replaced with new ones made with extruded profiles in aluminium, thermal insulated, anodized and painted. The HVAC system will be installed and then the new false ceiling. Following the list of macro-operations and relative costs.

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FIRST SCENARIO OPERATION Installation of external insulation (internal curtyard facad)

DESCRIPTION Includes removal operations of external plaster, substitution with a new thermal insulation system (EPS Pannel), external finish makeover with plaster and two layer of paint.

U.M.

U.M. quanty

EURO

m²

908,93

97.888,51 €

m²

230,93

49.594,60 €

66+1

78.962,00 € 139.314,46 €

Windows subsitution

Includes removal operations of the old windows and substitution with thermal insulation double glazing windows.

Installation HVAC system

Includes installation operation of supply fans, Heating and Cooling fan coils, GSHP pump

n

Installation of false ceiling

Includes installation operations of insulation plasterboard panel 60x60x2,2 cm

m²

3722

Scaffolding

Rent

m²

248,364

2.565,60 €

368.325,17 €

Fig. 15 – First scenario operations summary – See Attachment n. 10 – Source made by the authors

Fig. 16 – Wall sections of the first scenario – Source: made by the authors

3.5 Second Scenario Keeping the first scenario as the base of the renewal project, it has been developed a second one in order to increase the usable area of the building and improve the quality of the internal finishes of the building. This result has been achieved by two kind of interventions. The first one regards the perimeter wall highlighted in the beside Fig.17. This is composed by a shaft supporting-wall which runs along the perimeter below the windows and that includes inefficient thermal insulation panels.

Considering the new external insulation system installed in the first scenario we have proposed, the internal supporting-wall

Fig. 17 – Pianta tipo with shaft-wall highlighted – Source made by the authors

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became now useless, so it’s possible save additional 163 m2 in the whole building through its demolition.

The second intervention aim to improve the quality of internal finishes. The internal partitions made up by double chamber bricks are dismissed and then substituted with thinner movable glass partitions in order to design a more flexible open space. After the aforementioned dismission a new flooring system made of gres tiles will be installed. Thanks to this intervention the quality of finishes is increased, and the internal space will gain in flexibility and can be so customized as needed.

SECOND SOLUTION OPERATION Installation of external insulation (internal curtyard facade)

DESCRIPTION Includes removal operations of external plaster, substitution with a new thermal insulation system (EPS Pannel), external finish makeover with plaster and two layer of paint.

U.M.

U.M. quanty

EURO

m²

908,93

97.888,51 €

Windows subsitution

Includes removal operations of the old windows and substitution with thermal insulation double glazing windows.

m²

230,93

49.594,60 €

Demolition of supporting-wall

Includes demolition operations of the double chamber brick, substitution with plasterboard, internal finish makeover with plaster and two layer of paint.

mc

62,57

50.930,98 €

Demolition of internal wall and installation of movable partitions

Includes demolition operations of the internal wall and installation of movable partition

m²

80,50

37.621,44 €

Installation of false ceiling

Includes installation operations of insulation plasterboard panel 60x60x2,2 cm

m²

3722

139.314,46 €

Demolition of the floor and laying of new floor

Includes demolition operations of the floor and laing the new one in Linoleum 50x50x2,5 cm

m²

3917

249.708,75 €

Installation HVAC system

Includes installation operation of supply fans, Heating and Cooling fan coils, GSHP pump

n

66+1

78.962,00 €

713.885,19 €

Fig.18 – Second scenario operations summary – Attachment n 10

Fig. 19 – Second Solution wall and internal partitions section – Source: made by the authors

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4. ENERGY SYSTEM IMPROVEMENTS 4.1 New HVAC System Type – GSHP and FCU

The new proposed system includes GSHP pump, fan coil units and domestic heating water system. A geothermal heat pump or ground source heat pump (GSHP) is a central heating and cooling system that transfers heat to or from the ground. It uses the earth all the time, without any intermittency, as a heat source (in the winter) or a heat sink (in the summer).

This design takes advantage of the moderate temperatures in the ground to boost efficiency and reduce the operational costs of heating and cooling system and may be combined with solar heating to form a geo-solar system with even greater Fig 19 – GSHP System: Source Google images efficiency.

Ground source heat pumps (GSHPs) are among the most energy-efficient technologies for providing HVAC and water heating. Setup costs are higher than for conventional systems, but the difference is usually returned in energy savings in 3 to 10 years, and even shorter lengths of time with federal, state and utility tax credits and incentives.

In brief, the advantages of this system are: 1. Heat pumps can also provide cooling in summer, as well as heating in winter 2. Ground source heat pumps are the only renewable energy technology that can benefit from the thermal energy storage properties of the ground to recycle heat from summer to winter 3. A well-designed ground source heat pump system is likely to increase the sale value of our property 4. GSHPs are safe, silent, unobtrusive and out-of-sight: they require no planning permission 5. Heat pumps save space. There are no fuel storage requirements Finally, ground source heat pumps are very well suited to commercial buildings, especially those which have a need for cooling in summer as well as heating in winter. However, expert design and installation are critical in achieving high carbon savings and low running costs.

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4.2 Energy Simulation At this point a new energetic simulation was carried out following the same methodology used for the simulation of the state of affairs described in the paragraph 2.3.2.

For summary reasons, only the final results are reported here, for further details please refer to the annex

Scenario 1 / 2 -Energy Consumption(Yearly) HEAT RJECTION

75,85335

PUMPS

686,39538

FANS

6490,93338

INTERIOR EQUIPMENT

66070,383

INTEIOR LIGHTING

8995,60197

COOLING

5309,48493

HEATING

2220,06498 0

10000

20000

30000

40000

50000

60000

70000

Fig. 19 – First and second scenario energy consumption – Attachment n. 5 - Source: made by the authors

From the Fig. 19 we can see that the consumption of the HAVC and Lighting rate became less than the actual state of arts due to the equipment we consider they use the same computer etc, so the equipment became the biggest part. This chart shown us that our new proposal is very much more efficient.

In order to get understand the solution efficiency level, we used the LEED baseline building from the Ashrea standard, which is used as benchmark, due to give us a most clear view of the energy efficiency level.

Total Energy Consuption (Yearly) Total Heat Rjection Pumps Fans Interior Equi pment Intei or l ighting Cooling Heating 0

50000

100000

Scenario 1 / 2

150000 Excsting Building

200000

250000

300000

350000

LEED Baseline

Fig. 20 – Compared Energy consumption results Existing building and our proposals – Attachment n. 5

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As can be seen from the chart, the overall building energy performance has been greatly improved after redesigning, especially in heating and cooling. This achievement is mainly due to the use of ground source heat pump technology and high-performance peripheral protection structure. At the same time, due to the control system that can linearly adjust the intensity of the light with the intensity of natural light and can automatically turn off when there are no people in the space.

All in all, From the energy simulation, our new design can save 33%Energy yearly cost compare to the existing building. If we compare to the international benchmark LEED, it can save 70% energy yearly cost, which means, we can get all the marks in the LEED energy part, it is a perfect approach.

5. MAINTENANCE The starting point for defining the various design solutions proposed is certainly the understanding of the state of art of the building, therefore its technical design and the consequent maintenance plan. As verified by an energy simulation, the building is in a state of poor technical efficiency under the energy point of view, because the surface of the internal façade does not present any type of thermal unlike the façade on via Pisani that has recently been insulated.

The first step to be performed is to define the technological section with the different elements that compose it and for each of them will be necessary to define the ESL or the useful life of each element related to the intrinsic and extrinsic conditions in which the building component is located. For this calculation we will proceed with the so called "factor method", which consists in a definition of 7 parameters that concern all the (constructive and locative) aspects of the layer; the calculation will therefore produce an adaptation of the service life given by the producer (RSL) in a useful life of our specific case (ESL). To the aforementioned parameters A, B, C, D, E, F, G will be assigned a coefficient that will vary from 0.8 to 1.2 according to the differences between the conditions suggested by the manufacturer and those present on site; then the useful life value of each element is defined by applying the formula ESL = RSL * A * B * C * D * E * F * G.1 Table x shows an example of calculating the ESL starting from RSL applying the factor method.

RSL

Tempered glass backpainted

35

quality of components

design level

A

B

ISO certification

1 Via Pisani 15 building

certified product 0,8

work execution level indoor environment outdoor environment In-use conditions

C pre assembled panel to be fixed accurate desing level mechanically pre assembled panel detail reported in to be fixed technical card mechanically 0,9 1

D

E

standard indoor conditions

standard weathering conditions

Office condition

Milan (pollutions)

1

0,9

F no specific conditions declared no specific conditions declared 1

maintenance level

ESL

G no maintenance plan recommended no maintenance plan recommended

-

22,68

1

Fig 21 – Example of calculation for of ESL from RSL– Attachment n. 3 - Source made by the authors

For each layer of the sections considered, it was necessary to draw up a technical card (using the Milan Municipality Price List) that would allow to evaluate frequencies2 and costs3 of the various operations to be carried out in order to keep each element in optimal conditions until the end of its service life.

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23

tempered glass code

operation

description

U.M.

€/U.M

frequency (years)

notes

2C.24.770.0010.b

cleaning

cleaning of claddings, frames and windows

mq

1,25

1

1

1C.23.700.0050.b

sealing maintenance

Sealing of glasses

mq

2,00

5

2

mq

110,87

30

-

Corrective maintenance

mq

110,87

30

-

Condition based maintenance

Supply and installation of colored tempered 1C.23.175.0020.e partial refurbishment glass only for damaged panels; thickness 10 mm Supply and installation of colored tempered 1C.23.175.0020.e total refurbishment glass only for damaged panels; thickness 10 mm (1) J. R. Albano, La manutenzione degli edifici, p. 125 (2) R. Di Giulio, Manuale di manutenzione edilizia, p. 290

strategy Predetermined maintenance Predetermined maintenance

Fig. 22 – Example of technical card. – Attachment n. 3 – Source made by the authors

5.1 Method Description At this point there are all the information necessary for the preparation of maintenance scheduling. Having to decide the time horizon we opted for a period of 25 years, considering it as a time span in which a project proposal can remain technologically and functionally valid, after which it will be necessary to make significant changes to the organization of internal spaces, replace the electro-mechanical systems to improve their performances and be able to meet the requirements imposed by the legislation.

In table x you can see an excerpt of the maintenance scheduling of the external vertical partition that overlooks the internal courtyard.

COURTYARD FACADE External paint

Cement plaster

concrete

reinforced fibre panel double chambers brick

gypsum plaster

Windows

cleaning Total refurbishment cleaning+visual check instrumental check Partial refurbishment total refurbishment Inspection Partial refurbishment Total refurbishment light intervention partial refurbishment total refurbishment partial refurbishment total refurbishment cleaning visual check partial refurbishment total refurbishment cleaning maneuvering system treatment restore seals and gaskets renewal of protective lacquer substitution

16,13 19,98 16,32 33,14 22,63 31,28 33,14 58,13 449,46 9,42 8,15 8,15 11,62 293,66 14,00 2,32 22,63 31,28 1,25 18,90 2,00 14,79 183,15

908,93 908,93 908,93 18,1786 908,93 908,93 14,58 729,24 393,79 317,955 95,3865 317,955 317,96 25,44 317,955 317,955 317,955 317,955 283,64 283,64 283,64 283,64 283,64

€ € € € € € € € € € € € € € € € € € € € € € €

14.661 18.160 14.834 602 20.569 28.431 483 42.391 176.993 2.995 777 2.591 3.695 7.470 4.451 738 7.195 9.946 355 5.361 567 4.195 51.949

5 10 5 5 10 20 10 20 45 not possible not possible 25 13 25 4 4 7 13 2 2 5 7 19 Annual average expenditure

€ € € € € € € € € € € € € € € € € € € € € € €

43.983 36.321 44.501 1.807 20.569 28.431 483 42.391 2.591 3.695 7.470 17.805 2.951 14.391 9.946 4.255 53.608 1.702 8.390 51.949

€

15.890

Fig. 23 - Excerpt of Maintenance Scheduling – Attachment n.1 – Source made by the authors

Before being able to calculate the total costs, some optimizations were made to the basic setting of the table, in which is foreseen the execution of an operations whenever indicated by its frequency.

The modification of the basic version was performed applying the only rule of not perform cleaning, painting (green) and visual inspection and instrumental (blue) in the neighborhood of partial and total refurbishment operations. Another of the t main objectives were to couple interdependent operations in order to optimize the costs of total and partial refurbishment of overlapping or internal elements of a package. After the reorganization of the scheduling in this direction, the total costs are been calculated as the total expense of each operation over a period of 25 years.

5.2 Driver of the project solution The project solutions have been designed and evaluated to be less expensive in monetary terms compared to the actual situation. To reach this goal we have tried to i) reduce the

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number of elements of each component taken into consideration (external vertical partitions, internal vertical partitions, horizontal partitions, doors, windows), ii) improve the efficiency of the maintenance operations of the element iii) increase the ESL through the use of materials with a higher durability and a more accurate maintenance planning.

5.3 Result The first solution concerns only energy efficiency, therefore the impact on the maintenance plan is marginal. Having added new elements, maintenance costs increase, even if just slightly, compared to the state of art the additional annual average expenditure is € 1.226, which is largely offset by an energy saving of € 45.238 per year.

The second solution allows to Fig. 24 – Annual average maintenance cost – Attach. N. – Source made by the authors increase the quality of finishes of interior spaces and increase the rentable area thanks to the demolition of the shaft against the perimeter walls and the internal partition as well, also the maintenance cost of internal component will drastically decrease because we’re not going to have so many activities to be carried out.

The average annual cost of the state of art is € 110.762,48, against € 69,560.14 of the project solution, which means € 41.336,61 on average per year.

The gap between the current situation and the project solution, under an expenditure point of view is € 1.033.415.30 over a 25-year horizon. The reduction in costs for maintenance operations on Via Pisani is due to the demolition of reinforced fiber panels, double chambers bricks and gypsum plaster, which are replaced with the internal plasterboard finish, while the savings achieved on the maintenance of internal spaces it is due to the replacement of the Fig. 25 – Comparison maintenance costs State of arts/scenario 2 - Attachment internal partitions with the movable n. - Source made by the authors glass walls with an aluminum profile.

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Fig 26, 27 – State of art and Solution 2 detailed maintenance costs – Attachment n. – Source made by the authors

5.4 Investment Evaluation After analyzing energy costs and maintenance operations individually, we decided to jointly evaluate the costs incurred to make the improvements decided in the project, first for technical reasons and secondly for economic ones. The technical question is the simple fact that the energy consumption is reduced both thanks to the greater efficiency of the new air conditioning system, and to the greater thermal resistance offered by the new perimeter walls improved with a new insulation system. The economic reason lies in the fact that both cost items are accounted as operating expenses and has been chosen to use the Discounted Cash Flow as a tool, to control the effectiveness of the project, we needed to know the net cash flows.

6. COMPARED RESULTS We implemented the Technical part with an Economic point of view, in order to show the feasibility of our interventions and a comparison between the two different scenarios. To do that, we decided to use as a “supervisor” of our case study the Current Open Market Value, calculated through the composition of the Discounted Cash Flow over a period of 10 years.

We developed three different Open Market Values (one for the state of art, and one for each of the two proposals; (Attachment n. 2) from those is possible to understand the composition of each scenario.

Our Values have been calculated starting from three main categories: income, costs and revenue.

In the Income part we used the Yearly rent of both offices and shops, calculated through an average value based on various indirect source (Borsino Immobiliare, Agenzia delle Entrate, Immobiliare.it) multiplied by the Commercial area (calculated in the Attachment XX excel paper: Misure Via Pisani).

The Costs part include an average maintenance cost calculated over 25 years period (Attachment n. 1), Energy consumption costs (Attachment n.5), Renovation costs (Attachment n. 10) Vacancy costs, Administration costs, Safety costs, Insurance cost and at last Taxes.

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After calculating the Yearly Net Cash Flow, we discounted it with the WACC, to get the Current Open Market Value.

These are the considered values, which have been very useful for the comparison between our proposals and to find out the best solution, as we will see later on.

The comparison between the Current Market Value of the State of Art and our two different proposals will show the feasibility of our interventions. Beyond the Market Value, these are the values taken into account to declare which one is the best solution:

Renovation Costs

Yearly Rent

Maintenance Costs

Energy Consumption

State of Art Yearly Rent

€ 900.720,20

Energy Consumption

25 yrs Average Maintenance costs € 110.762,48

€ 135.087,28

Current Open Market Value

€ 14.320.088,74

Fig. 28 – Best solution approach – Attachment n.2 - Source made by the authors

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From our analysis it’s possible to understand how the Maintenance Costs can affect the Market Value of a building.

Indeed, in the Second Scenario, after having an Initial investment that is almost doubled from the First, the Yearly Rent that is 12% higher, but the most important data to analyze is the Open Market Value; it’ll have a value increasing of 8% mostly due to the lower average yearly Maintenance Costs of the building (-38%). We’ve decided to maintain the same Energetic solutions in order to focus on the leverage given by the Maintenance costs and their role in the lifecycle of the building.

Moreover, even if the Initial Investment it’s 95% higher than the first one, the Payback Period doesn’t vary that much (from 2,71 to 2,99 years), so the risk of the investment it’s not much higher, making the Second Scenario the most suitable.

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REFERENCES B. Daniotti, Building durability and maintenance, 2009 For values of the frequencies of the operations refer to: J. R. Albano, La manutenzione degli edifici, 2009 R. Di Giulio, Manuale di manutenzione edilizia, 2007 M. Nicolella, Programmazione degli interventi in edilizia, 2003 J. Perret, Guida alla manutenzione degli edifici, 2001 3 For unit prices we referred to “Listino prezzi per l’esecuzione di opere pubbliche e manutenzioni del comune di Milano”, anno 2017 1 2

ATTACHMENT Attachment 1 - Maintenance scheduling and costs.docx Attachment 2 - Economic Evaluation.xlsx Attachment 3 - Technical cards.docx Attachment 4 - Technical cards.xlsx Attachment 5 – Energy consumption costs.xlsx Attachment 6 – VP15 BASELINE BUILDING.idf Attachment 7 – VP15 DESIGN BUILDING.idf Attachment 8 – VP15 BASELINE BUILDING.htm Attachment 9 – VP15 DESIGN BUILDING.htm Attachment 10 – Renovation costs.xlsx (DARIO)

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