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Green buildings
We are committed to delivering a high quality and sustainable portfolio. The use of independent green building certifications is an important part of our commitment to sustainability. Green building certifications are used to continuously assess and improve our assets performance over time, to the benefit of our tenants, investors and the wider environment. Centuria has focused on two main green building certification schemes, Green Star for new assets as part of our development pipeline, and NABERS for the operational performance of existing assets.
Green Star ratings
Centuria continues to be a member of the Green Building Council of Australia (GBCA), which is the nation’s authority on sustainable buildings, communities and cities. Their Green Star rating system continues to be Australia’s largest quality management certification for sustainable development in the built environment.
The rating system assesses the attributes of a project by focusing on a broad mix of sustainability impact categories, such as energy, waste, indoor environment quality, materials and land use.
42 Hoepner Road, Bundamba, Queensland
This year we opened one of Australia’s first 5 Star Green Star – Design & As Built Certified industrial buildings under the Green Building Council Australia’s (GBCA) new rating guidelines v1.3.0. The 10,244sqm facility is owned by Centuria Industrial REIT and is located within a 2.4 hectare site in the Citiswich Business Park industrial estate. This property was awarded for “Excellence in Energy Efficiency and Environmental Management” by Master Builders Queensland at the Brisbane Housing & Construction Awards 2022.
Sustainable features include a 99kw solar panel system, a recycled watering system and rainwater harvesting, drought resistant landscape and a new concrete system using steel fibres within the concrete which excludes the requirement for steel reinforcement. This manufacturing process recycles existing material and therefore minimises material usage and wastage, thereby, reducing the overall embodied carbon of the building.
90-118 Bolinda Road Campbellfield, Victoria
90-118 Bolinda Road, Campbellfield, was secured for $37.7 million and will be transformed into a five-unit industrial estate with estimated on-completion value of $104.1 million. The site will be developed by Centuria Industrial REIT in partnership with Cadence Property Group. Construction is expected to commence in 2023 with practical completion expected in 2024. The asset will target a 5 Star Green Star v1.3 Design & As-built rating by the GBCA.
57 Wyatt Street, Adelaide, South Australia
Taking advantage of Adelaide’s ‘Laneway’ culture, Centuria Capital Group has completed a boutique office development offering A-Grade amenity and floor space. The development is targeting a 5-star Green Star – Design & As-Built v1.3 rating. It is a commercial building consisting of six floors of office space, associated end of trip facilities, rooftop garden and an onsite retail tenancy. The building is owned by Centuria Office REIT.
The development is targeting a 5.5 star NABERS energy rating. Sustainable features include façade treatments to reduce solar glare, approximately 90% of total construction waste to be diverted from landfill and provision of electricity-only energy supply (no gas). The sustainability initiatives include:
- The HVAC and hotwater solutions are all electric. No gas in the building.
- No onsite car parking, to promote the use of bikes and public transport.
- Onsite End of Trip facilities.
- Targeting 90% of the total construction waste diverted from landfill.
- Façade treatments to reduce solar glare.
6-8 Munroe Lane, Albany, Auckland NZ
This asset, which is due for completion in 2023, has officially obtained a 5 Star Green Star NZv1.0 Certified Design Review rating. With Auckland Council confirmed as the anchor tenant, Munroe Lane will be the council’s most operationally energy efficient building. Some of the sustainability achievements on site are:
- All steel waste from the site has been 100% recycled
- 81.7% of the total construction waste to date has been diverted from landfill. This includes directly recycling 65 tons of steel, 56 tons of timber, 1.5 tons of cardboard and 269 tons of clean hard fill.
- 80% of the sheet piles, which equates to 250 tonnes of material, have been re-used from gold mine sites from the South Island.
- All materials excavated from the site have been tested and cleared of contaminants and reassigned as bulk fill materials for future sites and projects within the local area.
NABERS ratings
The built environment has a significant global environmental impact and is responsible for 40% of the world’s carbon emissions. The National Australian Built Environmental Rating System measures Australian buildings, tenancies and home environmental performance. A building’s NABERS rating is calculated by using measured and verified performance information (e.g. utility bills) and converting them into a star rating scale from one to six stars. The adjusted data is then compared to the NABERS benchmark data, and a star rating reflecting the organisation’s performance relative to its peers is calculated.
We undertake annual energy and water ratings for office assets across the Group. Our focus is on improving our scores year on year by tactical asset upgrades and tenant engagement. This year we are proud to report that our 2022 NABERS Sustainability Portfolio Index Energy rating for COF was 4.8, which is an increase from the 4.7 star rating from the year before.
We also participated in the NABERS Accelerate Program for Warehouses and Cold Stores. CIP was among over 55 participants from the industrial assets management industry, and one of only 13 participants to receive a pilot rating. The main goal of this program was to learn about how NABERS’ ratings for new warehouse and cold stores can improve their performance, which will be a key indicator for future assets within CIP.
This year we are proud to report that our FY23 NABERS Sustainability Portfolio Index rating improved to 4.9 star from 4.8 the previous year.
Case study: 82 Rodeo Rd, Gregory Hills NSW
In FY22, the Group collaborated with NABERS to develop their new Warehouse and Cold Stores tool. 82 Rodeo Road in Gregory Hills, a Centuria Industrial REIT asset, was chosen to be one of the first assets assessed under the new tool. With one of Australia’s largest industrial portfolios, the REIT provided key data about its warehouse and cold storage portfolio.
The main goal of this program was to learn about how NABERS’ ratings for new warehouse and cold stores can improve their performance, which will be a key indicator for future assets within Centuria Industrial REIT.
The property comprises 742sqm of office and 21,697sqm of ‘cross-dock’ warehousing, meaning it has loading on opposite sides for receiving and dispatching. The property features drive around access, an ESFR sprinkler system and multiple awnings for all weather loading. During FY23, the property was rated a 4.5 star NABERS energy rating.
Smart buildings
Ongoing effort to improve our asset performance isn’t just limited to green certifications. We’re continuously seeking to maximise value for our stakeholders who interact with our assets. An area of growing importance, particularly for our tenants is digital connectivity and capability. The WIREDScore certification scheme helps asset owners assess, improve, benchmark and promote the digital connectivity of buildings. 818 Bourke St, in Melbourne’s Docklands an asset within our Office REIT (ASX:COF) was assessed against the WIREDScore scheme, with the asset scoring Gold. Our internal asset management team was able to use this benchmark score to develop a roadmap to reaching a Platinum rating (the highest possible rating) in the next few years.
Valuing certifications as part of our investment approach
Green building certifications are an important part of Centuria’s due diligence process, with both Green Star and NABERS ratings forming part of a wider consideration for asset acquisitions. Ratings are also factored in as part of asset upgrades and influence where initiatives are deployed. Building certifications are communicated to the ESG Management Committee, who provide regular updates to the Culture and ESG Board. Training and awareness on green building certification is provided to employees, with opportunities to participate in wider industry forums available.