Australian impact fund manager Impact Investment Group (IIG) has entered the Sydney property market, securing options to buy into the $2 billion mixed-use master planned Central Park project.
IIG entered into Put and Call Options with 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 for approximately $190 million.
The site, which is partially developed, has already redefined the southern edge of the Sydney CBD, and has become a landmark for its architecture and innovative sustainability features.
On completion, due for mid-2018, IIG will acquire the six-level, 5,413 square metre ‘100 Broadway’ commercial office property and the 297-room luxury hotel ‘Four Points by Sheraton Sydney, Central Park’.
IIG has established separate investment syndicates for each property.
100 Broadway and the hotel form part of DUO – a mixed use development comprising two towers of residential, hotel, retail, childcare and commercial spaces, designed by the leading global architecture firm, Foster + Partners and local collaborating architect Architectus.
The Central Park precinct started winning awards in 2009, including the prestigious 2014 LEAF Sustainability Award (Global) and the International Green Infrastructure Award from the World Green Infrastructure Congress.
In February this year, the Greater Sydney Commission awarded Central Park its Great New Place to Live and/or Work prize, noting the precinct’s investment, innovation and leadership in ‘green’ and sustainable technology, and its comprehensive community consultation process.
IIG CEO Chris Lock, said the company was waiting to find a building designed to the highest standards in sustainability.
"We found this in spades in the Central Park precinct.”
“100 Broadway will integrate with Central Park’s highly efficient systems for power, heating, cooling and recycling water.
“It was crucial to us that the developers are prioritising recycled materials and environmentally-certified products during construction. We love the design’s thermal and acoustic features, and its measures for promoting occupant health.”
As tenants move in and start operating, IIG will monitor the building’s energy use, and work with the companies to reduce their power consumption, which should deliver valuable cost savings.
The properties will draw power from Central Park’s two-megawatt trigeneration plant, which is expected to reduce CO2-e emissions by 190,000 tonnes over its 25-year expected life.
Rainwater falling on the buildings’ rooftops will feed into Central Park’s water recycling factory, along with grey and black water from the precinct for re-use in its laundries, toilets and gardens.
The DUO towers sit on the north-west corner of the Central Park precinct in Chippendale, facing Broadway and are five minutes’ walk to Sydney’s central train station and bus interchange.
The towers are being built above and around the heritage-listed Australian Hotel, built in 1936 and bought last year by hotelier Bruce Solomon and high-profile chef Matt Moran.