Greenscape Making Good Progress at Denver International Car Park

Although traditionally a company offering ‘green’ retrofitting services and consultancy for businesses looking to reduce costs and carbon emissions, in recent months all eyes for Greenscape Capital Group (TSX: GRN) have been on their flagship Denver International Car Park project; the world’s greenest car park servicing Denver International Airport (DIA). Since beginning construction at the site in May, progress to date has been good, and just yesterday Greenscape confirmed they have secured solar and wind energy suppliers for the project. Although this is a divergence away from the company’s core Green.Switch energy retrofitting business, the car park project will serve as a showpiece green facility for Greenscape, as well as adding a significant financial asset for the company.

Greenscape Capital Group, market capitalisation C$9.68 million, aims to increase the environmental sustainability and energy efficiency of businesses and their operations; predominantly through environmental retrofitting, which has the added benefit to companies of reducing their energy costs. The company’s key asset is the 100% owned Green.Switch Canadian subsidiary, which facilitates these green retrofitting services. In addition to this, the Denver car park is quickly becoming a flagship program for the company, and is expected to value almost US$32 million when complete, of which Greenscape own a 90% stake (remaining 10% held by ProPark; the project’s operating partner).

The Denver green parking facility is a state of the art showpiece for Greenscape, featuring a 4,200 stall parking lot servicing the Denver International Airport. Construction is based on LEED GOLD building principles (i.e. the practice of creating structures and using processes that are environmentally responsible and resource efficient throughout a building's life cycle), alternatively fuelled shuttle vans, solar and wind energy, natural landscaping and geothermal energy. Denver International airport is, in terms of land size, the largest UIS airport, and the third largest airport in the world. In terms of passenger traffic, it is the fifth busiest airport in the US and the tenth busiest in the world, now serving more than 51 million passengers annually. The airport has seen rapid growth in usage in the past few years, which has spurred this need for a modern and energy efficient parking facility.

When complete, the project will be the worlds greenest parking facility, and is expected to bring in between US$19 and US$20 million per year gross revenue. Greenscape are targeting distributable case of US$22 million in the first three years of operation, and as mentioned above, the facility is set to value around US$31.7 million when complete.

Construction for the project began in May this year, following on from the closing of loan financing, which saw US$2.5 million advanced towards the development of the facility (on top of a US$8.5 million debt finance agreement with RBC Capital Markets Real Estate Group). Greenscape agreed a fixed cost contract, guaranteed by the Denver based construction company dcb Construction Company, a respected and well established company in the business for around 50 years. The project is due for completion in mid December 2010, and so far is on schedule and budget, to achieve this.

In July, Greenscape confirmed a supplier for the project’s LED lighting, contracting the Delaware based lighting firm; The LED Company. This company has previously supplied several major buildings and sites, including the Empire State Building, and uses the highest quality diodes in their LED construction, which can reduce power by up to 70% compared to industry standards. Greenscape also noted that the lighting being installed has a maintenance free useful life of over 10 years, and also have a strong warranty program in place with The LED Company.

As previously highlighted, just yesterday Greenscape announced details surrounding the project’s energy suppliers, confirming that solar, wind and geothermal energy will all be incorporated in the project. Eight vertical access wind turbines, manufactured by Mariah Power and designed to operate in urban settings, are being installed around the main entrance to the project. These turbines are 30 feet tall and 4 feet wide, and have a propeller free design, operating in an ultra quiet manner. The installation of these turbines is being completed by the Denver based Vibrant Solar. Six pole mounted solar arrays are also being installed at the parking facility, by the Arvada based Piper Electric. The solar panels being will be Evergreen solar panels, which have the industry's lowest voltage per watt rating. Greenscape note Evergreen has the smallest carbon footprint of any manufacturer in the industry, and ship all products with 100% cardboard free packaging, minimizing job site waste and disposal costs. Greenscape also note that the solar panel products come with a 25 year power warranty.

Going forward, Greenscape and the project's operating partner, ProPark, are working with industry leading suppliers of green products, from a variety of sectors for incorporation into the construction of the Denver parking facility.

This is likely to say continued newsflow over the coming months regarding new contract suppliers for the varying materials and services required for the facility. The project is due for ‘substantial completion’ as well as officially opening on 7th December this year, with the scheduled date of the final completion due just over a week later, on the 17th December. Greenscape already have a management contract in place with an experienced parking lot management company that operates 400 locations across North America and has been in the commercial parking business for 25 years.

This showpiece facility now only has a lot of potential benefits in both value and revenue’s for Greenscape, but may have an untold impact on the company’s future through the domino effect that such a dramatic example of a purpose built, energy efficient project, could have for potential customers. Coupled with the ongoing commercial successes of the company’s Green.Switch operations and energy retrofitting business, the energy efficient future is certainly looking bright for Greenscape Capital.