Parramatta City Council has become the first Council in New South Wales to sign an Environmental Upgrade Agreement (EUA), for 10 Valentine Avenue, Parramatta, confirming its commitment to environmental leadership.
The NSW State Property Authority, which was the tenant at the property, initiated the project with property owner Australian Unity. The EUA will be used for a lighting upgrade project, delivering an estimated 60 percent reduction in lighting bills while improving the overall value of the building.
In an Australian-first, the tenants will contribute to the repayment of the EUA, in turn gaining substantial benefits from reduced energy bills and improved amenity.
Lord Mayor of Parramatta, Councillor John Chedid, said the agreement was significant and reinforced Parramatta as a growing economic centre and business destination.
“EUAs in Parramatta’s CBD alone can potentially attract $150 million of investment in building upgrades; create148 full time jobs; and reduce building owners’ outgoing costs by $26 million, through water and electricity savings.
“Being home to the first EUA in NSW proves that Parramatta is a great place to invest and that we’ve got the solutions the commercial property market needs. Property owners both within and outside the City should talk to Council about what is possible,” said Cr Chedid.
Parramatta City Council began offering Environmental Upgrade Agreements to building owners in early 2012, providing an innovative financing model that makes it easier for owners to implement environmental upgrades to properties.
The upgrades must achieve improved environmental outcomes but can relate to work that is commonly required in older buildings, such as the installation of efficient air conditioning, lift and lighting upgrades, and retrofits that result in reduced energy and water costs for owners and tenants.
“A significant number of buildings in and around Parramatta were built over 20 years ago. EUAs are an amazing opportunity to upgrade our building stock and create opportunities for investment into the future,” Cr Chedid said.
Parramatta City Council is working with the NSW Government to deliver the shared goals, as outlined in the State Plan for the delivery of high standard building retrofit programs.
Low Carbon Australia CEO, Meg McDonald, said that there is a strong business case for upgrading existing commercial properties and EUA finance was overcoming the barrier of funding the upfront costs of energy efficiency projects.
“The Valentine Avenue project demonstrates how both building owners and tenants benefit from reduced lighting costs as a result of an environmental upgrade and how it is possible to structure EUAs so that the tenant contributes to the repayment of the project,” said Ms McDonald.
Parramatta City Council worked with the State Property Authority, Australian Unity, Low Carbon Australia and the National Australia Bank to achieve this significant EUA milestone.
