Along with the $ 30 million CEFC-guaranteed senior debt facility, Forza has raised $ 27 million in equity from its high net worth investor base to fund the acquisition and transformation of 200 Creek Street, which will part of a single asset trust.
The building is two-thirds occupied – major tenants include South East Queensland Water, Integral Group and Ramsay Health – and Forza is aiming for a 7.7% return once the building is renovated and fully leased.
Energy efficiency requirement
Improvements to be undertaken by Forza include the installation of energy efficient heating, ventilation and air conditioning, as well as solar panels and battery storage.
It will also modernize the elevator and building management systems, renovate the lobby and build a dedicated facility at the end of the trip.
When completed, the upgrades are expected to deliver a 55% reduction in emissions, resulting in a direct reduction of 415 tonnes of carbon dioxide per year or 7128 tonnes of CO₂ over the life of the building.
Green bank funding for the Forza project in Brisbane comes amid increasing attention to sustainability and reducing carbon emissions in the commercial real estate sector.
At last week’s AFR Property Summit, Lendlease Global CEO Tony Lombardo and JLL Australia and New Zealand boss Stephen Conry were among those who highlighted the pressure from investors and investors. tenants for energy efficient buildings.
“So if you don’t plan to renovate your old building, you have problems,” Lombardo said.
Liberal MP Tim Wilson, who was appointed Deputy Minister of Industry, Energy and Emissions Reduction in October, praised the Forza project and the funding provided by CEFC.
“By setting up these demonstration projects, you are not only showing how a technological approach to reducing emissions works, but you are proving to the real estate industry that it can work so that they make the decision to invest in their own stock.” , Wilson said. said to Financial analysis.
CEFC CEO Ian Learmonth said renovating existing commercial buildings would have a powerful impact on emissions and livability in Australian cities.
“This will turn them into energy efficient players who will support Australia’s transition to low emissions, while maintaining their competitive advantage,” he said.
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