Along with the $30 million senior credit facility backed by CEFC, 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 unitary trust.
The building is two-thirds occupied – major tenants are South East Queensland Water, Integral Group and Ramsay Health – and Forza is targeting a 7.7% return once the building is renovated and fully let.
Energy efficiency demand
Upgrades to be undertaken by Forza include the installation of energy-efficient heating, ventilation and air conditioning, as well as solar panels and storage batteries.
It will also upgrade the building’s elevators and building management systems, renovate the lobby and build a dedicated end-of-trip facility.
When complete, 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 7,128 tonnes of CO₂ over the lifetime of the building.
The green bank financing for Forza’s Brisbane project comes amid growing attention to sustainability and reduced carbon emissions in the commercial property sector.
At last week’s AFR Property Summit, Tony Lombardo, global CEO of Lendlease, and Stephen Conry, boss of JLL Australia and New Zealand, were among those who highlighted pressure from investors and tenants for buildings energy efficient.
“So if you’re not thinking about renovating your old building, you’re in trouble,” Lombardo said.
Liberal MP Tim Wilson, who was appointed Deputy Minister of Industry, Energy and Emissions Reductions in October, hailed 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” , Mr. Wilson said. say it Financial analysis.
CEFC CEO Ian Learmonth said retrofitting existing commercial buildings would have a powerful impact on emissions and livability in Australian cities.
“It will turn them into energy-efficient performers who will support Australia’s transition to low emissions, while maintaining their competitive edge,” he said.
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