This article is from the Australian Property Journal archive
LENDLEASE will power its new 42-storey commercial building Victoria Cross Tower in North Sydney entirely from renewables, as the property giant launches a decarbonisation roadmap.
Lendlease is developing and building the tower above the southern entrance to Sydney Metro’s new Victoria Cross station, which will form a plank of its aim to achieve absolute zero carbon for scopes 1, 2 and 3 by 2040.
The design allows for the building’s heating, cooling and domestic hot water plant to be fully electric, eliminating the building’s future reliance on fossil fuels.
Victoria Cross Tower will include an expansive lobby with multipurpose hub space will facilitate community connection, while outdoor balconies and green or “biophilic” spaces are intended to promote health and wellbeing.
It is 25% owned by Lendlease’s APPF Commercial and it will be the first building owned by the fund that is fully electric.
As part of its “Mission Zero Roadmap”, Lendlease will eliminate gas and diesel from designs and existing assets; switching to 100% renewable electricity; and partnering with suppliers and industry to eliminate embodied carbon in materials such as steel, aluminium and cement.
Lendlease said that while scope 3 emissions are outside its direct control, “emissions of this nature present the sector’s greatest transformation imperative”.
With global pressure mounting, more and more institutional investors are committing to net zero targets in their portfolios. The World Green Building Council estimates the built environment is currently responsible for 39% of global carbon emissions.
Landlords across the Asia Pacific are beginning to consider environmental, social and corporate governance factors in greater numbers when it comes to their real estate assets, according to PwC and the Urban Land Institute’s 2022 Emerging Trends in Real Estate report, as the prospect of a “green penalty” from tenants looms on the horizon.
RICS research shows more than half of property players believe that green and sustainable buildings achieve a rent and a price premium. More than one-third believe that the rent and price premium stands at up to 10%; around 15% judge it to be higher still.
“In line with our commitment to becoming a 1.5 degree aligned company, our Mission Zero Roadmap spans our integrated business in development, construction and investments,” Dale Connor, CEO Lendlease Australia said.
“Setting bold targets in 2020 was the first important step; outlining a clear plan and acting on it is essential to authentically decarbonise our business.”
Lendlease is one of hundreds of property companies that have signed their commitment to the Race to Zero campaign to achieve net zero carbon by 2050.
Also in North Sydney, Lendlease this week teamed up with Keppel REIT to acquire the Blue & William A-grade office building project in a $328 million deal. Lendlease will develop the building, which will then be owned by Keppel REIT. The deal includes a three-year rental guarantee from Lendlease.
