Ramez Afify of E4P discusses the Sustainable Design of Water Source VRF on the October 2013 of ASHRAE Journal:
One of the most attractive applications for watersource VRF is retrofit projects where an existing condenserwater system serves conventional water sourceheat pump units. Replacing the conventional heatpump system with water source VRF allows for improvingcontrols because of the capacity modulation feature.Also, it reduces noise by replacing the compressorwithin the heat pump with a much quieter fan coilsection, and it reduces the required ceiling plenumheight. The height of the air-handling section of VRF
See link below for access to full article
http://home.comcast.net/~tureston2011/RG/HVAC/VRF_System_2.pdf
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