Impact Investment Group, a Melbourne-based fund manager focused on impact investing, is set to invest A$190 million ($143 million; €133 million) in a A$2 billion mixed-use development in Sydney.
The firm has entered in to Put and Call options with the joint venture developers, Frasers Property Australia and Sekisui House Australia, to acquire two of the final properties to be built in the Central Park precinct.
Impact Investment will acquire the six-level, 58,265 square foot 100 Broadway commercial office property and the 297-room luxury hotel Four Points by Sheraton Sydney, Central Park.
“We couldn’t be more proud of our first foray into the Sydney market with these properties. We were waiting to find a building designed to the highest standards in sustainability. We found this in spades in the Central Park precinct,” commented Impact Investment’s chief executive, Chris Lock.
“It was crucial to us that the developers are prioritizing recycled materials and environmentally-certified products during construction. We love the design’s thermal and acoustic features, and its measures for promoting occupant health,” he added.
The properties will draw power from the development’s two-megawatt tri-generation plant, which is expected to reduce CO2-e emissions by 190,000 tons over its 25-year expected life. Rainwater falling on the buildings’ rooftops will feed into Central Park’s water recycling factory for re-use in its laundries, toilets and gardens.
Established in 2013, Impact Investment invests in property and real assets, particularly renewable energy, with plans to expand into private equity and other asset classes in the future. The firm considers both the investment’s prospects for a healthy return and its social and environmental intention before making an investment.