With the cost of energy soaring and energy reliability continuing to decline, Paringa Estate on Victoria’s Mornington Peninsula has used EUF to fix its energy costs.
Client: Impact Investment Group
Council: City of Melbourne
Project Overview: Impact Investment Group acquired 401 Collins St in 2014 with the intention of transforming it into a prime blue-chip address.
401 Collins St is an iconic art-deco building in the heart of Melbourne’s banking district. Built more than 80 years ago in 1936, it has aged significantly and lacks modern features. It’s NABERS rating of 2.5 was seen as a barrier to securing a strong, long-term tenant.
Restoration began in 2017. Finance for the environmental works were sourced via an EUA (Environmental Upgrade Agreement), while the funds for other renovations were sourced via a traditional bank loan. This combination of two lenders provided diversity to Impact’s capital stack at an affordable rate.
Since completing the renovations, Impact Investment Group have successfully tenanted the building to co-working franchise WeWork on a 15-year contract. In addition, power bills for the property have significantly reduced – electricity by 32% and gas by 16%.
“EUAs provide a low-cost capital option.”
– Roni Karika, Impact Investment Group Senior Asset Manager