Purpose-built student accommodation at dusk — every lit window is energy being paid for

Every lit window is energy you're paying for — and value you can capture.

Totem · Investor value model

Energy is the lever.
NOI, valuation and IRR are the verdict.

How a Totem install converts into the three numbers you report to your fund or board — worked through Bargate House, Southampton (122 rooms).

£18,300/yr
Net NOI uplift
£333k
Valuation created
1.5yrs
Payback after tax
9.1×
Value per £1 capex
The bridge

From a kilowatt saved to a return banked

1

Energy → NOI

£150 net saving per room per year, after our subscription. Recurring, and straight to NOI.

£18,300/yr
122 rooms × £150
2

NOI → valuation

Capitalised at a 5.5% exit yield. Durable, so it prices in at sale or refinance.

£332,727
£18,300 ÷ 5.5%
3

Capex relief

Qualifying plant under permanent full expensing — 100% FYA, ~25% of capex back as year-one tax.

£9,150
net capex £27,450
4

Green margin

Supports a sustainability-linked margin ratchet — 10 bps on £6.7m of senior debt.

£6,710/yr
≈ £33,550 over 5 yrs
5

IRR

NOI through the hold, year-one relief, the annual margin, and the exit uplift — on £36.6k of capex.

105.5%
NPV@10% £273k
The bottom line

£36,600 of Totem capex creates £333k of building value

£18,300 of recurring net NOI, capitalised at your cap rate, is ~£333k of value at exit or refinance — before year-one full-expensing relief and a sustainability-linked margin on the debt. A 9.1× value-to-capex multiple on a small, qualifying outlay.

TOTEM CAPEX IN £36,600 BUILDING VALUE OUT £333,000 9.1×
9.1×
Value per £1 capex
12.8×
Total return on capex
£42k
Tax + loan savings stacked
See your own numbers

Want this worked through your portfolio?

Fifteen minutes, your room count and tariff, and we'll send the NOI, valuation and IRR for your own estate.

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Questions

Energy, NOI and value — the common questions

How does reducing energy use increase a PBSA building’s value?
A building is valued at its net operating income divided by the cap rate. Energy is one of the largest controllable costs in all-inclusive PBSA, so a durable energy saving raises NOI — and at a 5.5% yield every £1 of recurring NOI adds roughly £18 of asset value. At Bargate House a £18,300/yr saving translates to about £333,000 of valuation.
What is the ROI and payback of energy management in PBSA?
At Bargate House the payback after tax is around 1.5 years, with value per £1 of capex of about 9.1×. UK full expensing returns 25% of the hardware cost as cash tax saved in year one, shortening payback further.
How much can Totem improve net operating income?
Roughly £150 of net saving per room per year after the Totem subscription, dropping straight to NOI. Across 122 rooms at Bargate House that is about £18,300 a year of durable, capitalisable income.
Does energy efficiency help with green financing and EPC compliance?
Yes. Better EPC and GRESB performance supports sustainability-linked loan margin ratchets, and room-level consumption data feeds EPC assessments ahead of the 2030 EPC C deadline for rental stock.
Assumptions & caveats

NOI uplift uses the net saving after subscription — the durable income a buyer capitalises. Deliberately conservative.

Total install capex is illustrative pending confirmed Totem hardware + install pricing. Under the pure subscription model upfront capex ≈ £0 and the value shows up as NOI/valuation uplift with no outlay.

Full expensing: 100% first-year deduction on new, unused qualifying plant for companies within UK corporation tax. The leased-asset exclusion can apply — confirm eligibility with the client's accountant.

The sustainability-linked saving accrues to the whole senior facility; Totem is a contributing factor toward the ESG KPI, not the sole driver.

Not modelled: cap-rate compression (the "green premium") on the whole building, which can outweigh the energy saving on its own.

Sources: GOV.UK — capital allowances, permanent full expensing; LMA / Pinsent Masons / Savills on sustainability-linked loan margin ratchets (2026). Figures are illustrative, not financial or tax advice.

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