The first 1200 Buildings environmental upgrades realised

Kings Technology Park (KTP) precinct at 100 Dorcas Street

The first environmental upgrade agreements have been signed under the City of Melbourne’s 1200 Buildings, at 123 Queen Street and the Kings Technology Park (KTP) precinct.

The three projects financed through environmental upgrade finance to date have involved primarily engineering services, however a spokesperson for Sustainable Melbourne Fund said available funding does stand to benefit the architecture and design service suppliers.

“The parties gaining the contract would depend on the nature and scope of the project and the managing contractor will vary depending on project scope and on how the building owner chooses to manage the retrofit.

Projects that involve an upgrade to the building envelope could feasibly see a builder, architect and project management company involved in the retrofit.”

The 123 Queen Street agreement, signed between the City of Melbourne, National Australia Bank (NAB), Low Carbon Australia Limited and the building owner is the first privately funded environmental upgrade agreement through the 1200 Buildings program

The $1.3 million retrofit of 123 Queen Street will include a trigeneration system to generate electricity, heating and cooling, as well as occupancy sensors and double glazing. The retrofit aims to cut CO2-e emissions by approximately 2500 tonnes per year.

The KTP agreement, signed between the City of Melbourne, Sustainable Melbourne Fund and the building owner, will provide funding towards a $3.2 million retrofit of the business precinct at 100 Dorcas Street, South Melbourne.

Kings Technology Park (KTP)

The upgrade of KTP will see four of the five precinct buildings fitted with new high efficiency chillers, cooling towers, lighting system upgrades and heating and air conditioning units and controls. The retrofit aims to cut CO2-e emissions by more than 2600 tonnes per year.

Chair of the Future Melbourne (Eco-City) Committee, Councillor Cathy Oke said these latest signings showed that building owners were becoming aware of the benefits and improved competitiveness through better performing buildings.

“The availability of environmental upgrade finance through the 1200 Buildings program overcomes traditional barriers to retrofitting and enables building owners to seize the business opportunities that upgrades present,” Cr Oke said.

“There is mounting evidence that higher rated buildings have increased appeal to both buyers and tenants and appreciate more in value.”

Sustainable Melbourne Fund Chief Executive Scott Bocskay said the signing of the first privately funded environmental upgrade agreement was a significant milestone.

“There is strong interest in environmental upgrade agreements from the commercial property sector and in what makes a retrofit project eligible for funding,” Mr Bocskay said.

“Environmental upgrade finance represents one of the most significant breakthroughs worldwide in financing retrofitting of commercial buildings.”

The City of Melbourne and Sustainable Melbourne Fund are hosting information sessions in early 2012 on how building owners and consultants and contractors to the sector can capture the opportunities created by the 1200 Buildings program and environmental upgrade finance.