For its efforts to deliver a property portfolio of net zero carbon emission buildings by 2030, Australian wealth management giant AMP Capital has attracted a $100 million investment from the Clean Energy Finance Corporation (CEFC).
CEFC’s investment in the $4.7 billion AMP Capital Wholesale Office Fund will accelerate the development of world-leading energy efficient commercial property portfolios in Australia, said CEFC Investment Funds lead Rory Lonergan.
“There is enormous opportunity to reduce emissions from buildings and to really push the boundaries of energy efficiency in the property sector,” Lonergan said. “This really sets a new benchmark for the commercial property sector in Australia.”
The centrepiece energy efficiency commitment across the AWOF portfolio is the redevelopment of the 50 Bridge Street property in Sydney (pictured), as well as Quay Quarter Tower and the wider Quay Quarter Sydney precinct incorporating the neighbouring Loftus and Young Streets mixed use development.
AWOF’s portfolio includes other landmark properties such as 200 George Street, Sydney, and Melbourne’s Collins Place and 700 Bourke Street. The 700 Bourke Street property is only the fourth in Australia to achieve the 6 Green Star performance rating from the Green Building Council of Australia, indicating world’s best practice operational performance.
AWOF fund manager Nick McGrath said: “We are really pleased to welcome CEFC as an investor in AWOF … With a portfolio of 12 premium properties, AWOF is well positioned to deliver sustainability outcomes for investors such as CEFC.”
AMP Capital is focusing on achieving Green Star Performance ratings for all wholly-owned assets in 2017, he said.
Sustainability is a key component of being an attractive investment vehicle, according to Chris Nunn, AMP Capital head of sustainability, real estate.
“Responsible investors are increasingly looking for demonstrably green assets, which deliver investment returns while minimising risk. Our customers also demand high sustainability standards that support their well-being, align with their values and minimise operating costs,” Nunn said.
Under its investment agreement with the CEFC, AWOF will target cutting emissions from its property portfolio to zero in 13 years, exceeding the goals of the internationally-recognised Science Based Targets program, which aims for a minimum 55% reduction in property sector CO2-e emissions intensity by 2050. AWOF will also aim for a portfolio-wide average NABERS Base Building Energy rating of 5.0 stars by 2020 and 5.5 stars by 2030.
A wide range of technologies can be used to achieve the efficiencies and emissions targets. They may include optimisation of ventilation, air-conditioning and heating controls through the building management system, LED lighting, programmed occupant-sensing lighting control systems, installation or procurement of energy sourced from renewable energy systems, energy-efficient façade design and glazing selection, and internal staircases to reduce elevator use.
CEFC property lead Chris Wade added: “The CEFC’s commitment to AWOF is a significant development in its property-related investment strategy, following major commitments to support leading edge energy efficiency measures in the Investa’s 60 Martin Place development in Sydney, and Quintessential’s historic 1 Malop Street redevelopment in Geelong.”