28 February, 2019
In an Australian-first, the CEFC and Cbus Property are targeting industry leading energy efficiency standards for the $1 billion Collins Arch mixed use development, ensuring the building will be a landmark in urban sustainability.
Located at 447 Collins Street, Melbourne, the twin towers of the 47-level Collins Arch building – linked by an impressive skybridge – will include 184 residential apartments, 50,000 square metres of premium office space across 24 levels, a 294 room 5-star W Hotel and a 1,000 square metre retail area.
Drawing on $100 million in CEFC term finance, Collins Arch will feature a range of industry leading clean energy technologies, including high-efficiency air conditioning, energy efficient façade fabric insulation, built in real-time energy monitoring and the capacity for residential electric vehicle charging.
The integrated approach is expected to deliver a minimum 20-25 per cent improvement on the development’s carbon footprint.
CEFC CEO Ian Learmonth said: “Collins Arch is a landmark development that will shape the character of Melbourne’s city skyline for decades to come. For the CEFC, this investment is about creating new environmentally sustainable standards in our cities, locking in a low carbon approach to building design and management that can deliver positive benefits over the long term.
“We are delighted to work with Cbus Property, a major property developer and manager, to incorporate these clean energy initiatives across a project of the scale and significance of Collins Arch. Cbus Property is a sustainability leader in the property sector, with a demonstrated commitment to delivering outcomes beyond industry standards.”
Cbus Property CEO Adrian Pozzo added: “The CEFC facility aligns perfectly with our long-standing focus on sustainability. The industry leading sustainability features incorporated throughout Collins Arch will help us deliver on our global commitment to achieve ‘net zero’ carbon emissions across our portfolio by 2030.
“Ultimately, we view these initiatives as positive contributors to investment performance and the opportunity to partner with CEFC on this major mixed-use property is compelling”.
Collins Arch will be designed to achieve a 5.5 star NABERS Energy rating for the Premium Grade commercial office space; a 4.5 star NABERS Energy rating for the W Hotel and a 7 star average NatHERS rating across the residential apartments.
CEFC Property Lead Chris Wade said: “Developments such as Collins Arch are another practical example of how clean energy technology can substantially improve the emissions profile of our buildings and cities.
“This investment continues our strong focus on reducing greenhouse gas emissions in the property sector, which is responsible for as much as 25 per cent of Australia’s carbon footprint. Our investments are also seeking to lift sustainability in hospitals, shopping centres, hotels, masterplanned residential communities, student accommodation and commercial-scale precincts.”
A CEFC-commissioned report, Energy in Buildings: 50 Best Practice Initiatives, identified 50 best practice initiatives that can help deliver net zero carbon buildings, using readily available and proven technologies.
Mr Wade added: “The initiatives reflect the insights of major investors across the property sector, many of whom are at the forefront of Australia’s clean energy transition. They offer property owners the potential to unlock billions of dollars in ongoing energy savings and deliver positive investment returns.
“In fact, two thirds of the initiatives have a payback period of less than 10 years, demonstrating the very strong commercial benefits of clean energy.”
Collins Arch, designed by Woods Bagot and SHoP Architects, is currently under construction with completion expected in late 2019.
Cbus Property is a wholly-owned subsidiary of Cbus, the industry superannuation fund for the construction, building and allied industries, with funds under management exceeding $48 billion at 30 September 2018. Cbus Property has responsibility for the strategic performance and management of all aspects of the Cbus direct property investment business, including major investments and developments in the commercial, residential and industrial sectors. The property portfolio exceeds $4 billion, with a further $5 billion of development work ‘in hand’, making Cbus Property one of Australia’s leading integrated property investors. Cbus Property has extensive experience undertaking sustainable initiatives within Australia and is committed to using its considerable experience in the investment and delivery of developments that provide a benchmark for both economic and environmental sustainability.
Media release, 2019