Investa has agreed to reveal the economics and strategies behind the development of energy efficient buildings, as part of a financing arrangement struck with the Clean Energy Finance Corporation for a commercial tower at 60 Martin Place in Sydney. The clincher for the deal was Investa’s new commitment to reach net zero by 2040.
The CEFC has provided $110 million in equity to help develop Investa’s new high-efficiency 33-storey commercial tower, forming part of a $600 million capital raising for the $4.1 billion Investa Commercial Property Fund.
The finance represents the largest-to-date commitment to new commercial property by the CEFC, and will help enable the building to target a minimum 5.5 star NABERS rating and 6 Star Green Star rating.
The $900 million building is set to have 40,000 square metres of net lettable area, and will feature an integrated service platform across systems including metering, airconditioning, emergency lighting and lighting control; regenerative braking in lifts; LED lighting; insulated glazing units and low-emissivity coating for glazing; and up to 75 kilowatts of solar panels.
Investa to share its sustainability successes
CEFC Investment Funds lead Rory Lonergan said the transaction also involved the establishment of a co-operation agreement “that will promote the increased uptake of energy efficiency design principles and technologies in the built environment”.
This will involve Investa creating an online resource to be made available to the wider property community outlining the company’s approaches and economics behind the development of energy efficiency in buildings.
“We see this agreement as being of immense value to the property sector generally, through its potential for collaboration with the early stage development of technology solutions,” Mr Lonergan said.
“Investors working to fulfil ambitious targets now are positioning themselves ahead of the game. Assets that operate at lower emissions levels are more competitive in a global economy, where evidence of sustainable practices is increasingly important.
“It’s where smart Australian operators will want to be.”
Investa’s net zero target clinched the deal
Investa recently revealed it had set a target of net zero emissions by 2040, to be verified under the Science Based Target initiative.
Mr Lonergan said this commitment was a key reason the CEFC had decided to make its investment.
“The CEFC recognises the importance of setting these targets to support Australia’s transition to a clean energy economy, by accelerating the adoption of integrated energy efficiency and renewable energy technologies,” he said.
The agreement will see Investa share:
- information and learnings on setting and applying Science Based Targets
- information and practices relating to Investa’s energy efficient building management practices and methods for reducing emissions
- portfolio-wide energy consumption information through an online data sharing platform
The company will also commit to engaging in early stage collaboration on significant energy saving programs; fostering partnerships with universities to support research and development; and participating in research and networking opportunities, including major local and global summits.
Investa chief investment officer Peter Menegazzo said the company was excited to be working with the CEFC.
“We bring extensive knowledge and expertise in the area of sustainable responsible investment and are committed to driving further change to the built environment, by sourcing and fostering new technologies in the management of office buildings and actively sharing our learnings and knowledge to advance the industry as a whole.”