T3 Collingwood puts the timber in high rise
1st Timber Building Program investment
T3 Collingwood, a 15-storey prime-grade office tower, will be one of Melbourne’s tallest hybrid mass timber buildings. The tower will cut carbon levels by as much as 40 per cent during construction as well as target market-leading net zero emissions once operational.
lower embodied carbon
Mass-timber construction is an important step in driving a sustainable future for the built environment we live and work in. Not only is timber a completely renewable resource, but timber offices are also biophilic in creating a more natural working environment for tenants and their staff.Simon NasaManaging Director, Hines
The CEFC, in its first investment through the specialist CEFC Timber Building Program, has committed up to $70 million in debt finance to the Melbourne T3 Collingwood environmentally-friendly timber high rise building.
The 15-storey prime office tower, developed and led by specialist global real estate group Hines, will be one of Melbourne’s tallest hybrid mass timber buildings. The project has also attracted finance from Madigan Active Debt Fund, backed by the Victorian Funds Management Corporation.
Cutting embodied carbon emissions associated with Australia’s $65 billion construction sector can play a critical role in our transition to a net zero economy. Traditional steel, aluminium and cement production have been widely considered difficult to abate materials.
While mass timber is less carbon-intensive than traditional construction materials such as concrete and steel, timber’s ability to also sequester carbon as it grows provides it with a negative carbon footprint.
The commercial property sector has been making significant progress to reduce operational carbon, and the CEFC is now seeking to accelerate the focus on embodied carbon. Timber has a vital role to play and represents the next frontier for the property sector.
Locking in mass timber construction in new projects, can help develop local skills and experience, supply chains and delivery capabilities, all of which can catalyse more timber-based building activity into the future.
T3 targets double impact
T3 Collingwood will deliver a dual emissions reduction impact – cutting embodied carbon levels by as much as 40 per cent during the construction phase and, once operational, target market leading net zero emissions.
The hybrid construction approach will feature a glue laminated timber structure with cross-laminated timber flooring on top of five reinforced concrete podium levels.
Timber will be sustainably sourced from two specialist Victorian mass timber manufacturers, XLam Australia and Australian Sustainable Hardwoods. T3 Collingwood will use about 4,000 cubic metres of wood for the structural frame, fixing in place about 3,000 tonnes of carbon.
As one of Australia’s leading institutional non-bank lenders in the real estate market, we believe we have a responsibility to invest in projects that are working towards using sustainably sourced construction methods and materials to reduce operational and embodied carbon. We were keen to work with the CEFC on this development. The use of leading environmentally sustainable construction techniques strongly aligns with Madigan Capital’s investment strategy.Michael WoodFounder and CEO, Madigan Capital
Hines T3 global portfolio
T3 Collingwood will be the first Australian addition to the Hines T3 global portfolio, a timber, transit and technology-orientated development methodology which supports the delivery of credible decarbonisation pathways.
The T3 construction replaces traditional structural systems such as concrete and steel with prefabricated solid wood systems, to create best-in-class projects in a fast, clean, sustainable and aesthetically pleasing manner.
The approach encourages owners, developers, architects, engineers and builders to use mass timber as an alternative to conventional construction materials such as concrete and steel for their projects.