This article is from the Australian Property Journal archive
ASX-listed Cromwell Property Group has completed a Sydney-first electrification upgrade of its 1970s property in Haymarket.
Undergoing a 12-month multi-million-dollar upgrade, commencing last June, the 24-storey McKell Building at 2-4 Rawson Place, Haymarket has been converted from a commercial gas-fired heating system to an electric HVAC system.
Cromwell acquired the McKell Building in June 2013 and the property is currently entirely occupied by NSW Government tenant, Service NSW.
This is first multistorey, 25,000sqm commercial building in the Sydney CBD to undergo an electrification upgrade of this kind.
“We are delighted to announce the completion of this project today. The McKell Building electrification upgrade will ‘future-proof’ this asset for years to come through the use of modern, energy saving equipment,” said Tessa Morrison, head of property operations at Cromwell.
“The building has held a NABERS 5.5 Star energy rating for the past two years – so, while it is already significantly energy efficient, we have been able to undertake works that will further reduce emissions and drive energy efficiencies. We estimate that we will achieve an initial 5% energy reduction of the total base building electricity consumption through the installation of the heat recovery chiller.”
The reverse cycle HVAC system means hot air that is removed in air conditioning will be recycled back into the system to be used elsewhere, with the system able to be programmed for seasonal efficiency, meaning reduced energy consumption throughout the year.
“Importantly, the completion of this project reinforces Cromwell’s commitment to deliver sustainable outcomes that align with our proposed Net Zero target for operational control buildings by 2035,” added Morrison.
Cromwell posted a $271.4 million loss following the previous year’s first-half loss of $129.5 million, after rampant property valuation declines, with the fund looking to seal a half-a-billion-dollar sale of portfolio of its Polish malls.
Last October, uncertainty in the market led Australian Unity and Cromwell to terminate their proposed merger that sought to establish a $1.1 billion unlisted investment property fund.
