The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE IN ONE WEEK RECOGNISING THE PEOPLE BEHIND THE PROJECTS
NOMINATIONS CLOSING NEXT WEEK URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
6
print
Print
OtherPartner ContentWed 29 Jan 20

How the CEFC Invests in the Property Sector

694d9afc-b8b3-4c3b-8fd6-7065a1af696e

Australia’s largest “green bank”, the Clean Energy Finance Corporation, is taking a leading role in clean energy projects across the property sector by investing in a range of emissions-reducing initiatives.

The federal government agency has committed almost $2 billion to commercial and residential property to help cut emissions by 250,000 tonnes a year—the equivalent of removing 53,000 cars from the road.

The built environment uses more than 50 per cent of Australia’s electricity, and the construction, operation and maintenance of buildings accounts for almost a quarter of all greenhouse gas emissions.

While the property sector has the potential to reduce emissions by 69 per cent from 2005 levels by 2030, it is on track to achieve just an 11 per cent reduction under current policy settings.

How the CEFC invests

▲ While new buildings in many sectors are adopting energy efficient designs, the task of upgrading Australia’s large stock of existing buildings is proceeding slowly. Image: One Central Park.


The CEFC works with investors to help raise clean energy standards across the built environment by supporting market-leading emissions solutions.

“We commit to demonstration projects to help prove the benefits of investing in best-in-class performance around energy efficiency and the integration of renewable energy into new and existing buildings,” CEFC executive director Rory Lonergan said.

“Our investments also ‘crowd in’ other environmentally-aware investors seeking projects with enhanced sustainability standards.”

The CEFC is working with Mirvac as it plans to develop clean energy masterplanned communities, as well as create a low emissions build-to-rent investment platform.

The CEFC has also committed $100 million in finance for Cbus Property’s Collins Arch project—which includes 7-star NatHERS apartments—and helped Cromwell Property Group cut emissions by more than 50 per cent than current building requirements at its LDK Greenway Seniors’ Living Village in Canberra.

The CEFC has invested in the hotel sector to assist Pro-invest develop and operate up to 15 new hotels aim for a 5-star NABERS rating—helping cut as much as 25 per cent of its energy consumption.

The CEFC has backed community housing providers SGCH and Housing Plus develop 700 homes with 7star NatHERS ratings and committed $120 million in finance for Curtin University’s Exchange innovation hub.

In commercial property, the CEFC has invested in QIC’s Shopping Centre Fund, Lendlease’s Australian Prime Property Fund Commercial and Investa’s Commercial Property Fund in exchange for improvements in energy efficiency across their respective property portfolios.

AMP’s Capital Wholesale Office Fund has committed to support net zero emissions by 2030, while Dexus’ Healthcare Wholesale Property Fund is targeting emissions reductions of 45 per cent in new and existing buildings.

Why property-related emissions matter

▲ Cbus Property’s $1.25bn Collins Arch includes 7-star NatHERS apartments; 5.5-star NABERS Energy rated offices and a 4.5-star NABERS Energy rated W Melbourne hotel.


CEFC executive director Rory Lonergan says that energy efficient buildings support a least-cost pathway to net zero emissions.

“The CEFC is responsible for investing $10 billion in clean energy projects on behalf of the Australian community—and our investments are tackling some of Australia’s toughest emissions challenges right across the economy,” Lonergan said.

“When it comes to property, our targeted debt and equity investments are unlocking high-impact and cost-effective sustainability solutions.

The $10 billion federal government agency is active across all property sectors including office, retail, residential, aged-care, student accommodation, social and affordable housing, healthcare and hotels.

“High-performing buildings have lower operating costs and reduced exposure to volatile energy prices,” Lonergan said.

“Building with stronger ‘green’ credentials are also likely to be more attractive to tenants and buyers, leading to higher valuations. Importantly, investors are looking for ESG opportunities, such as those available across the property sector.”

Sustainable Cities Investment Program

CEFC investment commitments in the built environment are part of its Sustainable Cities Investment Program, which is accelerating the development and deployment of a broad range of clean energy projects in Australia’s 50 largest cities.

The CEFC also has a strong focus on sharing the learnings from its investment commitments across the industry. It collaborates with major industry bodies with a shared sustainability focus, including PCA, GBCA, ASBEC, NABERS, ClimateWorks Australia and GRESB.

To learn more about the CEFC’s investment in the property sector, click here.


The Urban Developer is proud to partner with CEFC to deliver this article to you. In doing so, we can continue to publish our free daily news, information, insights and opinion to you, our valued readers.

OtherRetailResidentialOfficeHotelHealthcareBuild-to-RentAustraliaMelbourneCanberraFinanceOther
AUTHOR
Partner Content
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Arup Targets Podium Finish for Brisbane CBD Headquarters

Taryn Paris
6 Min
Exclusive

No Cookie Cutters: Finding Feasibility in HAFF Projects

Patrick Lau
6 Min
Exclusive

Brisbane Transaction Activity Steams Ahead for A-Grade Residential

Taryn Paris
5 Min
Exclusive

Starchitect Ivan Harbour on the Power of Small Spaces

Taryn Paris
6 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
View All >
Mirvac is launching its Everdene, Mulgoa community for 1200 homes with lots ranging from 200sq m small lots to 2000sq m rural lots this month.
Residential

Mirvac Takes Covers Off $1.2bn Western Sydney Masterplan

Renee McKeown
Canberra Tradesmen's Union Club rendering
Residential

Canberra ‘Tradies’ Club Puts Forward 645-Unit Precinct

Leon Della Bosca
Hotel

Gold Coast Suns Make Off-Field Play with Tavern Plan

Phil Bartsch
The AFL club has teamed with Australia’s second-largest pub group and an under-the-radar veteran developer for the proje…
LATEST
Mirvac is launching its Everdene, Mulgoa community for 1200 homes with lots ranging from 200sq m small lots to 2000sq m rural lots this month.
Residential

Mirvac Takes Covers Off $1.2bn Western Sydney Masterplan

Renee McKeown
2 Min
Canberra Tradesmen's Union Club rendering
Residential

Canberra ‘Tradies’ Club Puts Forward 645-Unit Precinct

Leon Della Bosca
3 Min
Hotel

Gold Coast Suns Make Off-Field Play with Tavern Plan

Phil Bartsch
4 Min
Simplicity Living is expanding its build-to-rent arm with plans to build 600 homes in Queenstown as the development industry looks to a light at the end of the “tough times” tunnel.
Build-to-Rent

NZ’s Simplicity Plots $500m Queenstown BtR Scheme

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/cefc-invests-in-a-cleaner-green-built-environment-for-australia