Real Estate

AMP Capital awarded A$100 million mandate from Clean Energy Finance Corporation

By AMP Capital media team

Not for release or distribution in the US

The Australian Government’s Clean Energy Finance Corporation (CEFC) has committed to AMP Capital’s leading sustainability credentials by investing A$100 million in the AMP Capital Wholesale Office Fund (AWOF). 

Becoming carbon neutral by 2030 is just one of the ambitious long-term targets that makes AWOF an attractive investment for CEFC and other sustainability-focused investors. 

Others include lifting the portfolio’s NABERS average* to 5.5 Stars by 2030 and delivering a pipeline of highly-sustainable flagship assets like Australian Technology Park and Quay Quarter Tower, which is targeting a 6 Star Green Star and 5.5 star NABERS rating once completed.

In addition, Quay Quarter Tower is pursuing certification against the leading edge WELL Building Standard to address tenant interest in boosting the productivity and wellbeing of their staff. 

CEFC’s investment in AWOF shows that there is investor appetite to invest money in demonstrably sustainable portfolios. 

AWOF Fund Manager Nick McGrath said: “We are really pleased to welcome CEFC as an investor in AWOF, which attracted over $700 million in equity investment in 2016.  With a portfolio of 12 premium properties, AWOF is well positioned to deliver sustainability outcomes for investors such as CEFC.”

AWOF's quality pipeline of green assets, including Quay Quarter Sydney and Australian Technology Park, are among existing premium commercial office assets such as 200 George Street in Sydney and 700 Bourke Street in Melbourne, which was recently awarded a 6 Green Star Performance rating.

This rating indicates world's best practice operational performance and Bourke Street was only the fourth building in Australia to achieve this accolade.

 Mr McGrath said: “This certification validates the excellent work of AMP Capital’s operations team, who have carried through the green principles from the design and construction phase into the ongoing operation of this building.

“Having achieved the 6 Green Star Performance rating for 700 Bourke Street, AMP Capital is now focusing on achieving Green Star Performance ratings for all other wholly-owned assets in 2017.” 

CEFC Investment Funds lead Rory Lonergan said the CEFC investment in the $4.7 billion AMP Capital fund would help accelerate the development of world-leading energy efficient commercial property portfolios in Australia.

According to Mr Lonergan: “AMP Capital was selected for this mandate due to the quality and performance of the AWOF portfolio and AMP Capital’s broader commitment to achieve long-term sustainable outcomes. 

“There is enormous opportunity to reduce emissions from buildings and to really push the boundaries of energy efficiency in the property sector.  With this investment, the CEFC is pleased to support AMP Capital in its objective to deliver net zero emissions across the commercial property portfolio.  This really sets a new benchmark for the commercial property sector in Australia.

“We are attracted to AMP Capital’s development pipeline of highly sustainable assets and its innovative approach to exploring electricity procurement opportunities to transform the energy market.”

CEFC is looking to magnify the impact of this investment by AMP Capital sharing learnings and expertise with the broader property industry. 

Sustainability is a key component of being an attractive investment vehicle, according to Chris Nunn, Head of Sustainability, Real Estate at AMP Capital.

Mr Nunn said: “Responsible investors are increasingly looking for demonstrably green assets that deliver investment returns while minimising risk.  Our customers also demand high sustainability standards that support their wellbeing, align with their values and minimise operating costs. 

“We pride ourselves on having a holistic sustainability strategy with ambitious long-term emissions reduction targets for our real estate assets, which in turn will influence our supply chain and benefit the broader community.” 

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Important notes

While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455)  (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.

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