Clean Energy Finance Corporation (CEFC), the Australian government-run clean energy financer, has committed $100 million ($75.9 million; €71.8 million) to AMP Capital in order for the Sydney-headquartered global investment manager to deliver a property portfolio of net zero carbon emission buildings by 2030.
The capital has been allocated to the $4.7 billion open-ended AMP Capital Wholesale Office Fund which has a target of cutting carbon emissions from its property portfolio to zero in 13 years.
“There is enormous opportunity to reduce emissions from buildings and to really push the boundaries of energy efficiency in the property sector,” said CEFC Investment Funds’ lead Rory Lonergan.
AMP will target a range of energy efficiency commitments across the portfolio. The centerpiece is the redevelopment of the existing 50 Bridge Street property in Sydney, as well as Quay Quarter Tower and the wider Quay Quarter Sydney precinct incorporating the neighboring Loftus and Young Streets mixed-use development. The portfolio includes other landmark properties such as 200 George Street in Sydney and Melbourne’s Collins Place and 700 Bourke Street.
“Responsible investors are increasingly looking for demonstrably green assets, which deliver investment returns while minimizing risk. Our customers also demand high sustainability standards that support their well-being, align with their values and minimize operating costs,” said Chris Nunn, AMP Capital’s head of sustainability, real estate.
A wide range of technologies will be used to achieve the efficiencies and emissions targets including: optimization of ventilation, air conditioning and heating controls through the building management system. In addition to: LED lighting, programmed occupant-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.
CEFC Property lead Chris Wade added: “Our focus in the property sector is to deliver both debt and equity financing solutions to drive exemplar energy efficiency and clean energy standards across a range of commercial and residential properties.
“The CEFC’s commitment to AWOF is a significant development in its property-related investment strategy, following major commitments to support leading edge energy efficiency measures in the Investa’s 60 Martin Place development in Sydney, and Quintessential’s historic 1 Malop Street redevelopment in Geelong.”