- 60% of investors say that they have adopted ESG in their investment strategy
- The property industry is a significant contributor to global emissions
- Brisbane's Energex house has become the first in Queensland to receive a 6 star Green Star office building rating
There are signs that investors are showing a growing awareness of the importance of social responsibility and the benefits that socially conscious investment can have for both returns and the planet.
60% of respondents to CBRE’s 2021 Global Investor Intentions Survey indicated that they have adopted Environmental, Social and Governance (ESG) criteria as a part of their investment strategies.
The survey revealed a stronger focus on ESG issues than in previous years for Americas, EMEA and Asia-Pacific.
CBRE’s Senior Managing Director, Queensland, Bruce Baker believes the shift means investors are considering ESG in all aspects of their properties.
“With the energy used to heat, cool and light buildings accounting for 28% of all global carbon emissions, pressure is growing on building owners, operators and occupants to reduce their carbon footprint,” Mr Baker said.
“While carbon reduction efforts may not generate higher rents to offset the yield premium today, it will play a prominent role in preserving asset value as occupiers increasingly shy away from properties with subpar environmental performance.”
“As occupiers and investors are drawn to properties that are more sustainable, these assets will be worth more.”
CBRE Senior Managing Director, Queensland, Bruce Baker
Brisbane’s Energex House
One of Brisbane’s first major property offerings for the year is the Energex House.
The building is the first in Queensland to receive a 6.0-star Green Star office building rating, it is also the recipient of a maximum 5 Star GRESB Rating in 2021. With this impressive resume, the listing may just prick the interest of the socially conscious investor.
The already fully leased property is anticipated to reach a pricing of more than $360 million.
Energy Queensland occupies 92% of the 30,563 sqm building on a long-term lease through to August 2030.
The asset also includes multiple ground level retailers.
Mr Baker, who is in the team appointed to steer the international Expressions of Interest campaign believes the building’s ESG features and strong tenancy covenant are expected to generate interstate and international interest.
“There has been a clear uptick in investor appetite for quality Australian office assets with robust ESG credentials,” Mr Baker said.
“In the case of Energex House, the building offers exceptional sustainability ratings and an anchor tenant that delivers essential community and social infrastructure and has made a significant investment into delivering high quality ESG outcomes to its customers and stakeholders.”
“This includes a commitment to source 50% of energy from renewables by 2030.”
