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Sustainable logistics asset case study: Giving the green light to energy efficiency from Aberdeen and Flamingo Flowers

Another success story by Addleshaw Goddard.

With an ambitious net zero goal, global investment company Aberdeen wanted to make its property portfolio greener. When they approached one of their tenants – world-leading floral supplier Flamingo Flowers – with a plan for solar, the seed for an energy efficient partnership was planted.

But installing a solar PV system at Flamingo’s large UK site wasn’t simply a matter of mounting roof panels – the project needed to be structured so both parties achieved their objectives. With a collaborative approach, we set our clients on the path to short-term solar transformation – and the right track for future green energy initiatives.

Introduction

Although Aberdeen and Flamingo Flowers were keen to work together, it quickly became clear this was no average solar project. Unusually, the site had scope for ground-mounted solar panels as well as rooftop, which would result in a surplus of electricity.

In addition to conducting the usual access arrangements and feasibility assessments, Abredeen had to establish ownership rights for their private electricity supply and negotiate a beneficial price for their tenant. And with extra electricity being generated, they’d need to agree terms for selling it back to the grid.

Crucially, the cost of installation couldn’t impede Aberdeen’s ability to offer discount electricity pricing either.

To add to the challenge, Flamingo Flowers would have to remain fully operational throughout the project.

What happened

Both Aberdeen and Flamingo Flowers needed to benefit from cost savings through the private electricity supply. So we negotiated a fair price contract which not only covered Aberdeen’s outlay but offered Flamingo Flowers a discount.

To save time, costs and hassle for Flamingo Flowers, we negotiated light-touch lease agreements without re-gearing. This meant solar panel installation and ongoing roof maintenance could be accounted for in the existing lease.

What’s more, we knew Aberdeen had their sights on similar projects. So we armed them with the right tools and templates to make it easier to approach tenants for future projects themselves, without needing legal involvement from the start.

The outcome

Flamingo Flowers gained electricity self-sufficiency and an economical advantage from a new onsite supply, all while remaining operational and under lease. Aberdeen started greening their property portfolio with a successful solar installation that even offered an extra income stream. And through it all, we showed sustainability goals and cost savings aren’t just for new building initiatives – they can be achieved by retrofitting solar to existing properties too.

With some forward thinking and collaborative spirit, we made sure our client and their tenant benefitted – now, and in the future.