EQUITY GREEN

India's Richest Man To Build 60-Story Home...Al Gore Up In Arms!

Just kidding...about Al Gore but not about the 60-story home.  His name is Mukesh Ambani and he is the richest man in India.  He is planning on building a 60-story home for his family in the heart of Mumbai.  The monstrosity will feature a helipad, health club, hanging gardens, six floors of parking and 600 live-in staff.  I guess it was only a matter of time before the Ambani family outgrew their current home...a 14-story building named Sea Wind.  Mr. Ambani was ranked 14th on the 2007 Forbes' richest worldwide rankings list with a net worth of around US$20.1 billion.  Since the ceilings are 3x as high as a normal buildings, the tower will only have 27 floors.  I am interested in seeing pictures on this one...I don't even know why someone would build such a thing.  This blows extravagance so far out of the water its not even an issue.

++India's Richest Man Builds 60-Storey Home [article]

Green Trends in Real Estate!

I have been thinking a lot about trends lately.  Trends and infrastructure.  I think we all tend to think about trends...the latest trends in music, clothes, television programming (i.e., reality shows, emergency room drama), home prices, etc.  Regarding home prices...you hear and read everyone's speculation about what prices are going to do...with respect to interest rates, with respect to supply and demand...how some areas of the country are flat-lining while others are still experiencing growth.  On the other side of the coin, we have infrastructure.  It seems that if you have a solid infrastructure, you are poised to rule the world...no matter what industry.  Consider Microsoft and Windows.  Consider the freeway system of a city whose population is growing like crazy...I don't know how many times I think to myself, "I wish they would have just built an 8 lane freeway to begin with as opposed to starting with a 4 lane."  Granted, there are numerous reasons for the current infrastructure (budgetary, etc) but to the extent you have a good infrastructure to push your products...you are that much more ahead of the competition.

So, these thoughts have been occupying my mind's space.  Now join the two...trends and infrastructure...now add a side of real estate and a sprinkle of green technology...where does that leave us?  That leaves us with a huge bowl of opportunity soup!  In all seriousness, we are at the front-end of some tremendous growth.  I know the "green" industry is growing and gaining a lot of speed, but there is still a lot of work to not only educate the masses but also to bring existing infrastructure (built-to-code structures) up to sustainable standards in the US alone.  Infrastructure includes everything from roads and bridges to energy supply and mass transportation systems.  Improving our infrastructure will ultimately reverberate to homebuilders and other developers...creating opportunities for growth. 

Do we have the capacity to accept more growth if we improve our infrastructure?  Maybe.  But first, let me first introduce private funds (billions of dollars parked in the private sector like pension funds, hedge funds, equity funds, banks, etc) to diversification.  Diversification will show private funds the world of opportunity that is infrastructure.  Anyway...I think there is a ton of opportunity over the next 10-20 years building up a sustainable "green" infrastructure.

California is getting there.  Voters have approved an almost $40 billion infrastructure bond that would spurn various infrastructure development in the start.  What do you think?  Do you think growth in the infrastructure market is important?  Do you have any ideas on how to finance the rebuilding of the infrastructure market?  Let's hear it!    

California Infrastructure

Green Urban Issues Like The Heat Island Effect!

When I lived in San Francisco, I used to ride my bike across the Golden Gate bridge to Marin County.  I would ride in the hills for 20-30 miles and then return.  I could always feel the temperature start to rise when I made it back to the city, especially on hot days.  Although I didn't know it, I was experiencing what is called the "heat island" effect, which is basically caused by buildings and pavements taking the place of trees and other vegetation.  The buildings and pavement absorb more heat and cause cities to be hotter than rural areas by as much as 3 to 8 degrees.  Trees and vegetation provide shade and also give off water that evaporates and cools their surfaces and surrounding air.  Thus the gaining popularity of "green roofs."  Although aestically pleasing to surrounding buildings and to people that have access to their premises, green roofs also provide a positive environmental impact.

A green roof can be a huge asset to any building.  With a green roof, the building will absorb less  heat, which means less energy is needed to cool the building...which also reduces the overall HVAC size requirements of a building.  In addition to energy, a green roof will absorb more rain water, reducing the need for complex stormwater management techniques.  Other advantages  of a green roof include:  durability, accoustical comfort, energy efficiency, heat island reduction, human well-being, outdoor air quality, water efficiency.

If you don't use a green roof, using concrete or materials that have a higher solar reflectance, or albedo, will help reduce the heat island effect, saving energy by reducing the demand for air conditioning, and improve  air quality.

Heat Island Info

Solar Power for the Masses Provided By BP and Old Country Roofing

In a move to make solar power more accessible, BP and Old Country Roofing (OCR) have partnered together to bring  "solar roofing solutions" to homebuilders and homeowners in Northern California.  BP and OCR plan to install solar panels that are actually built into the roof...not attached separately or bolted on top of an already existing roof.  This definately makes sense from a design perspective...creating a seamless integration between panel and roof.  And according to Paul Garvison (director of business development for BP), including a solar panel in the cost of construction will result in lower installation costs to the consumer.

For an idea on installation costs, Sun Power Corporation assembled a general cost analysis...outlining what it would cost to install a solar panel system...a 4000-watt system at a base cost of $9 per AC watt.  Based on their numbers, it would cost $24,000 in California and $16,600 in New Jersey (this is the net cost after state-specific rebates and incentives...and the federal tax credit).  If you were to finance the cost of installing a $24,000 solar panel over 15 years, it would cost you roughly about $200/month (15 years @ 6%). 

Although the BP-OCR move directly impacts homeowners/homebuilders in Northern California,  if you live elsewhere, don't feel left out.  BP is bullish on solar power and plans to bring it to everyone!  In mid-November, BP announced it was investing $70 million to expand its Fredrick, Maryland based solar panel maufacturing plant, a move that will "...keep us in command of a growing industry by meeting future demand and providing innovative products to the market."