- Property developer ISPT have opted to retain and transform 500 Bourke Street, instead of demolishing
- Decision made to uphold the firm's commitment to sustainability, and will dramatically reduce carbon emissions
- Reflects changing developer attitudes towards sustainability, highlighted in a recent report by JLL
Industry superannuation fund-backed developer ISPT has announced it will invest $150 million in transforming a Bourke Street asset, rather than demolishing the building.
The bold move is in favour of reducing carbon emissions, with the commercial asset of 500 Bourke Street set to become one of ISPT’s most sustainable holdings.
The choice to remodel the building will reduce carbon dioxide emissions by 57,000 tonnes. That’s equivalent to the emissions of almost 9,000 cars per annum or the output of 2,400 typical Australian homes.
ISPT have committed to upholding their sustainability commitment throughout the duration of the development and into the future.
The base building will operate on 100% renewable energy and be carbon neutral from day one of construction, with these standards to continue indefinitely.
The final product, scheduled for completion in mid-2023, will target a 6-star Green Star and 5.5 Star NABERS energy rating. The building will be tenanted by insurance company TAL, scheduled to move in at the end of 2023.
ISPT take sustainable approach for iconic building
Sustainable building and development practices have been in the spotlight recently, with many developers shifting towards an energy-conscious focus.
In a recent report released by JLL, the global real estate services firm explained that overhauling a city’s existing building stock to meet net-zero carbon standards is critical to decarbonise a city’s economy.
“Knocking down an old building in order to build a new, albeit greener building is ‘net net’ more detrimental than retrofitting the existing stock. The greenest building is the one that’s already built,” the report read.
ISPT’s General Manager of Commercial Services, Nicole Ward, said the firm’s understanding of the importance of repositioning existing assets lies at the heart of the decision to revitalise 500 Bourke Street.
Described by Ms Ward as a “once-in-a-generation opportunity”, she said transforming the iconic Melbourne tower will lead ISPT towards net-zero carbon emissions.
“We, as developers and custodians of the cities in which we live, have a responsibility to take a more environmentally conscious approach to the way we do business.”
Nicole Ward, ISPT General Manager Commercial Services
“By repositioning, rather than demolishing 500 Bourke, we are reaffirming to all of our partners, tenants and investors alike, that our commitment to our ESG principles is a driving force behind every decision we make,” she said.
The firm’s commitment also spurred the creation of the ISPT Sustainable Furniture Scheme, which aimed to relocate more than 15,000 office furniture pieces and 42,000 sqm of office tiles abandoned at the site.
The program raised $200,000 which have been donated by ISPT to the Property Industry Foundation’s Furniture Fund. The money raised will go towards building a home for displaced youth in the Victorian region of Shepparton.
