The landmark Readers Digest building in Sydney’s Surry Hills is expecting to book dramatic energy savings with property improvements financed under a $1.2 million Environmental Upgrade Agreement (EUA), co-funded by the Clean Energy Finance Corporation (CEFC).
The three-level commercial office building’s major tenant is Cellarmasters, one of the world’s largest direct wine marketers, which is set to benefit from improved office conditions as well as reduced energy bills.
CEFC CEO Oliver Yates said the project is targeting lighting and air-conditioning energy savings of more than 60 per cent.
“When complete, this project will demonstrate the tremendous potential for older commercial properties to use innovative EUA finance to make lasting improvements to their energy consumption, delivering ongoing benefits for tenants and owners,” Yates said.
“Australia’s cities have a large number of B and C grade commercial properties, many of which are well over 20 years old. The owners of these properties have an opportunity with EUAs to make improvements that reduce operating costs, enhance the occupant experience and maintain the value of buildings against newer properties.
“Enhancing the energy efficiency of existing buildings through EUAs is one of the most cost-effective ways for the commercial property sector to reduce ongoing operational expenses and carbon emissions.
“Greener buildings have the benefit of lowering utility bills, which is attracting increasing interest in this EUA program."
The upgrade is being undertaken by consultancy NuGreen Solutions.
Paul Schlaphoff, NuGreen Solutions CEO, said the upgrading to LED technology with smart lighting would replace the old fluorescent lights. A new building management system would allow better management of energy efficiency throughout.
In addition, energy efficient chillers would be installed to replace the 1960s chiller and two others servicing the building. Eureka Funds Management is providing capital for upgrades and company director Niall McCarthy said Eureka EUF has capital available to lend and is actively seeking to finance further EUAs.
“The fund provides environmental upgrade finance that can be repaid over 7 to 10 years, which allows property owners to offset charges with energy savings achieved,” McCarthy said.