Ecosave announces that a landmark building in Perth achieves a NABERS 4 Star Rating. Through Ecosave Services Agreement, 99 St Georges Terrace rating was uplifted from zero to its current four-star rating.
A landmark building located within Perth’s CBD, achieves a NABERS 4 Star Rating for Energy Performance. Managed by Colliers International (WA), 99 St. Georges Terrace went from a zero (0) energy rating to four (4), thanks to the Energy Services Agreement (ESA) implemented by Ecosave.
Built in 1971, the 13-storey building’s ageing plant and equipment upgrade was funded by a 10-year Ecosave Services Agreement. The project’s scope of works included ongoing energy management and maintenance services, metering upgrades, and an integrated main HVAC plant, which were coupled with a NABERS Energy Star Rating Guarantee.
Ecosave predicted the upgrades and solutions implemented through the ESA would achieve a 4 Star Rating (an uplift from 0 Star Rating) once building occupancy rate reached a certain level. Ecosave included a Guarantee in the ESA in relation to the targeted NABERS Rating.
Patrick Jeannerat, Building and Sustainability Manager at Colliers International, revealed that new tenants will be moving into the newly-renovated building. “Since the upgrades were completed, three new tenants have signed leases and negotiations for other leases are under way, so the returns to the building owner are already improving.” Jeannerat also mentioned that the ESA required no upfront capital outlay or debt, and its goal is a cash-flow positive income.
Robin Archibald, Ecosave’s Group Managing Director, understands the challenges faced by commercial building operators, “Typically debt-funded plant and equipment upgrades can be a hefty impost on the investors’ debt profile reflected in the balance sheet and can therefore affect future borrowing potential, not to mention risk profile.” ESA is different as it can be treated as an off-balance sheet operating expense item. “We are essentially providing energy efficiency services to meet or overachieve a guaranteed savings target.” Archibald added.
Mr. Jeannerat revealed that different funding models were offered, “New funding schemes to be run by WA local governments, similar to schemes already in place in Victoria, NSW and South Australia, are also being considered to finance building upgrades.”
He also shared that these types of upgrades are timely solutions for other commercial building owners in Perth. Some lack the capital for the necessary upgrades to improve their buildings’ value and occupancy rates.
The 99 St Georges Terrace project proof positive that the building’s upgrade is a necessary reset to improve the returns for its owner.
The Ecosave Energy Services Agreement is instrumental in overcoming these financial hurdles because it removes the required up-front capital for these project upgrades. “Ecosave carries the long term financial and performance risks while the client benefits from immediate building upgrades at zero-up-front costs and no debt incurred.” Robin Archibald said.