CEFC Finance in Action: Ambitious Energy EfficiencyDownload section
Pushing the boundaries in commercial property
The CEFC is investing $110 million in equity as part of a $600 million capital raising for the $4.1 billion Investa Commercial Property Fund (ICPF).
The commitment will help Investa finance the development of the $900 million 33-storey energy efficient office tower at 60 Martin Place in Sydney. The building is being designed to achieve both a National Australian Built Environment Rating System (NABERS) rating of in excess of 5.5 stars, and a 6-star Green Star rating from the Green Building Councel of Australia.
Investa is the first Australian property company to commit to a Science Based Target of net zero emissions by 2040, supported by a work plan of carbon reduction programs.
With the support of the CEFC, Investa will create an online resource outlining Investa’s approaches and the economics behind the development of energy efficiency in buildings. It will be available to the wider property community, supporting the CEFC’s goal of encouraging Australia’s commercial property sector to transition to higher levels of building sustainability.
The CEFC agreement provides Investa with an unprecedented opportunity to further advance our market leading position by once again being first mover in the identification of emerging technology that can be incorporated into the way we and the industry as a whole manage office buildings.
Accelerating net zero emissions in property
The CEFC investment in the $4.7 billion AMP Capital fund will help accelerate the development of world-leading energy efficient commercial property portfolios in Australia. The centrepiece is the redevelopment of 50 Bridge Street in Sydney, as well as the wider Quay Quarter Sydney precinct.
AWOF’s portfolio includes landmark properties at 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.
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, motion-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.
We are really pleased to welcome the CEFC as an investor in AWOF, which attracted over $700 million in equity investment in 2016. With a portfolio of 12 premium properties, AWOF is well positioned to deliver sustainability outcomes for investors such as CEFC.
Infrastructure finance tackles freight emissions
The CEFC made its first investment in clean energy transport infrastructure in 2016-17, committing up to $150 million to the Moorebank Logistics Park intermodal terminal in south-western Sydney. By 2030, developer Qube Holdings expects the project to:
- Reduce the distance travelled by container trucks on Sydney’s road network by 150,000 kilometres every day
- Deliver annual net carbon emissions savings equivalent to removing 11,000 vehicles from the road for a full year, or burning 25,000 tonnes of coal
- Generate 65,000 MWh/year from renewable energy sources installed on site, capable of powering more than 10,000 homes.
More than 1,300 jobs are expected to be created during the construction phase.
This infrastructure investment will also contribute to delivery of the Australian Government’s Western Sydney City Deal, which brings together Federal, State and local governments to help unlock the economic potential of Sydney’s outer west, while improving liveability in the local environment.
We are extremely proud to be the first transport infrastructure project which the CEFC has chosen to support in this way. Being able to deliver a faster and more reliable supply chain that creates savings for our customers, as well as remove thousands of truck trips from our roads at the same time as delivering very significant environmental benefits is a great trifecta.
Peer-to-peer green lending platform
The CEFC provided $20 million to Australia’s first peer-to-peer green lending platform, the RateSetter Green Loan marketplace.
The innovative online platform allows investors to lend directly to creditworthy borrowers looking to buy or install an approved ‘green’ product. Through the online platform, investors can nominate the amount they wish to invest, the interest rate they are prepared to accept, and their request can then be matched to approved borrowers. Borrowers can access this finance to invest in eligible clean energy assets.
Eligible assets include:
- Solar and storage equipment - such as solar panels and inverters for rooftop installation, solar thermal, solar hot water and batteries that form part of a solar installation
- Energy efficient and low emission equipment - such as power factor correction, voltage optimisation, LED lighting, heating, ventilation and air conditioning.
We are delighted to have the support of the CEFC to develop this initiative to support the uptake of clean energy in the home, on the road and in the running of Australian businesses.