Office of Environment and Heritage Chief Executive Lisa Corbyn, said the extra star  acknowledged that the Australian property industry is reaching a standard  previously considered beyond world’s best practice.

“In the 10 years since the NSW Government introduced the first environmental performance rating for offices, Australian commercial buildings have become so much  more efficient,” Corbyn said.

“The move was called for by top performers in the commercial property industry who are already moving beyond NABERS five-star excellence towards a market-leading six star goal.”

“It reflects an ongoing improvement in the environmental performance of Australian buildings over the past 10 years, underpinned by the robustness of the NABERS tool as a performance measure.”

Corbyn said office buildings using NABERS to measure and manage energy and water use improved greenhouse performance by an average 11 per cent and water efficiency by 9 per cent.

Seventeen 5.5 and 6 star NABERS Energy and Water rating certificates have been awarded to NSW office buildings, tenancies, hotels and shopping centres achieving market leading performance and efficiency.

A further 30 NSW buildings which have gone beyond five stars in water and emissions savings through purchasing GreenPower or recycled water have also received 5.5 or 6 star certificates.

NABERS includes tools for Energy, Water, Waste and Indoor Environment.

Sixty per cent of Australian office space has been rated with NABERS Energy, 68 per cent in NSW. Around 5 per cent of rated buildings are currently achieving a 5 star rating, set as an aspirational target in 2000. A 6-star rating awards ‘Market Leading’ performance, and represents a 50 per cent reduction in greenhouse gas emissions or water use from 5 stars.

Michael Cameron, CEO and Managing Director of the GPT Group, an early adopter of the ratings tools, said a decade of benchmarking building performance  with NABERS has driven efficiency gains across the company’s portfolio.

“As a company with a strong commitment to leading the market in energy efficiency and sustainability, we welcome the extension of the NABERS rating scale,” Cameron said.

“It provides the opportunity for us to set higher targets, and to demonstrate the effectiveness of our environmental initiatives across the portfolio.”

Two organisations have already signed 6 star NABERS Energy Commitment Agreements:

Grocon and GPT will target a 6 star NABERS Energy rating for the ground breaking Legion House project in Sydney. As part of the 161Castlereagh Street development,  the 1902 heritage building will be refurbished to be carbon neutral. When completed, Legion House expects to be the first 6 star NABERS heritage building in Australia.

Local Government Super has committed to retrofitting 76 Berry Street in North Sydney, including an innovative tri-generation system, toachieve a 6 star NABERS  Energy rating.

NABERS Commitment Agreements enable building proponents to promote their NABERS rating commitment from the outset of a project, and provide a process to achieve measurable operational performance results.

For more information on the extension of the NABERS scheme, go to nabers.com.au

As the flagship project of the refurbishment programfor Local Government Super’s (LGS) propertyportfolio, 76 Berry Street, North Sydney, is one of the first two buildings in Australia, and the first in North Sydney, to sign a NABERS 6 star Energy Commitment Agreement.

Due for completion in late 2011, the refurbishment builds on the excellent NABERS 5 star Energy rating currently held on the 24-year-old, A-grade

LGS CEO, Peter Lambert said that the NABERS Commitment Agreement allows the organisation to confirm its commitment to energy efficiency in a very tangible way. commercial building.

In 2010, the project was recognised by the Federal Government’s Green Building Fund as an exemplar project and received a $2.1 million grant towards the  refurbishment.

The building comprises two levels of basement parking, lobby and retail areas, including a coffee shop, restaurant and landscaped gardens and 10 levels (11,000m2) of office accommodation.

Walker EcoStrategies director and project director of 76 Berry Street, Roger Walker, said that the grant allowed LGS to take a more ambitious green position with regards to the technologies used in the refurbishment.

“As this was the first time that the lean burn low environment impact Bennett Clayton engines have been used in a trigeneration plant, the funding essentially enabled us to take that risk,” Walker said.

By utilising this technology, which provides simultaneous production of energy, heating and cooling, LGS is aiming to reduce greenhouse gas emissions by up to 80 per cent and improve theenvironmental performance of 76 Berry Street to  achieve a market leading 6 star NABERS Energy rating.

“We believe that on completion this will result in the lowest emission office building in occupancy in Australia and will be a world leading example of emission reductions in existing buildings,” Walker said.

It is anticipated that the project, which includes the Shaw Method of air-conditioning and BennettClayton engine technology, along with other leading Australian   technologies, will operate 100 per cent independent of the electricity grid within the first  year following completion.

With five office building upgrades in NSW already under its belt, LGS has used the experience to adapt tried and tested energy efficient technologies for 76 Berry Street. The most energy efficient building in Sydney - the group’s 120 Sussex Street - led by example. The same E1 Lighting, manufactured in south west Sydney, and PowerPax chillers, manufactured in Melbourne, have been installed in 76 Berry Street. These technologies reduce the heat load in the building, which Mr Walker said will  be crucial to achieving the NABERS 6 star Energy rating.

“Being able to refer to the portfolio’s experience, with all commercial upgrade projects delivered through property managers CBRE, has given LGS the confidence to take the next step to reduce energy emissions to a much lower level,” he said.

For Brian Churchill, LGS property portfolio manager, the main challenge has been in the design, management and delivery of the works in an occupied building without disturbing the tenants.

This is significant from a bottom line perspective in that LGS has avoided loss of rental income during the upgrade.

“The 76 Berry Street project has shown there are cost effective ways to upgrade existing buildings to a NABERS 6 star Energy rating. LGS has taken a leadership position in relation to environmental performance, which in the long term should provide advantages for tenant retention and attraction,”  Churchill said.

The environmental leadership shown by LGS was recognised at the 2011 Green Globe Awards, the NSW Government’s annual environment awards, where LGS was a finalist in both the Energy Award and the Built Environment Sustainability Award.

LGS commenced measuring the environmental footprint of its property portfolio in 2004, and by 2007 all property assets had adopted GreenPower for base building energy.

The organisation’s policy to aim for a NABERS 5 star Energy rating or better (without green power) on all its properties has driven LGS to find innovative, sustainable solutions to transform the form and function of existing buildings while at the same time increasing the value of their asset pool.

After Pixel in Victoria, widely recognised as the first carbon neutral office building in Australia, Grocon has signed a NABERS 6 star Energy Commitment Agreement with the NSW Government who administers the NABERS program nationally for the refurbishment of Legion House in Sydney’s CBD.

Legion House, a heritage-listed building dating back to 1902, is part of the 161 Castlereagh Street project. The site also includes a premium office tower, which will be the new home of ANZ and Freehills in 2013.

The project is jointly owned by Grocon and GPT Wholesale Office Fund.

GPT CEO Michael Cameron said Legion House would set a new benchmark for heritage refurbishment.

“It marks the next sustainable GPT investment, joining iconic buildings such as the 6 Star Green Star workplace, which features tri-generation and a black water treatment plant and has achieved a 5.5 star NABERS Energy rating,” Cameron said.

Grocon Site Engineer (Sustainability) Brendan Coates said sustainability was one of Grocon’s four core values, along with safety, community and innovation.

“With Pixel currently being Australia’s greenest building as rated by the GBCA, we believe we are atthe forefront of sustainable technology and we want to push the  boundaries even further,” he said.

“Grocon is committed to achieving a market leading 6 star NABERS Energy rating in operation at Legion House.”

The NABERS Commitment Agreement is a contract between the NSW Office of Environment & Heritage as NABERS National Administrator and Grocon.

Legion House will be the new head office of Grocon in NSW in 2013. It is first refurbishment of a heritage building to commit to a 6 star NABERS Energy rating since the NABERS scheme was extended.

Grocon is planning to achieve a carbon and water neutral outcome at Legion House. In an Australian first for a CBD office building, it plans to disconnectfrom the mains  electricity grid, and is investigating a range of options to supply surplus renewable power, including biomass gasification technology to be supplied to the office tower on site.

“The most significant challenge in achieving the 6 star rating will be that Legion House doesn’t have any access to sunlight or wind, so we’re restricted in what forms of renewable energy we can use,” Mr Coates said.

“As far as we are aware, Grocon is the only organisation to look at using the technologyin this way, with the entire fuel, gas, electrics  and electricity production on the one site. The technology is not new or unique, but the way we will set it up on the one site is unique,” Coates said.

The project aims to transform Legion House into one of the greenest buildings in the world, setting a new benchmark for the creation of sustainable city precincts.

The highly energy efficient design embraces a number of other environmental initiatives, from vacuum toilets, to timber sourced from sustainably managed forests and high thermal performance curtain wall facades.

Coates said Grocon had undertaken a significant amount of design innovation and application to make the aims achievable.

“Along with our consultants, Grocon will be running energy models regularly and stringently in order to meet our NABERS targets,” he said.

“For example, a computer model examines how the building is built, including all the materials, the envelope, and services, such as lighting and HVAC (heating,  ventilation and airconditioning), which enables us to run it against occupancy and other known variables.

“As the design decisions are finalised, the model is developed to ensure we are running on track and that we pick the best sustainable options.

“From the outset, we’ve been aware of tailoring the design solution for Legion House and the 161 Castlereagh Street project to demonstrate a very cost effective yet extremely high level of performance,” he said.

Key Facts

The 161 Castlereagh Street redevelopment comprises a 50 level, 44-story premium grade office tower. It has 55,000 square metres of office space and 3,200 square metres of retail space. Grocon has signed a Commitment Agreement to achieve a 5 star NABERS Energy rating for the office tower.

It incorporates Legion House, an existing 4-level heritage building, two single level retail buildings and a large open plaza space. Grocon has signed a Commitment Agreement to achieve a 6 star NABERS Energy rating for Legion House.

Green retrofitting

Green retrofitting has been gathering pace in the past decade and there is now proof that the practice makes good business sense from all angles – it boosts corporate  reputations, reduces environmental impact and offers financial advantages.

Thanks to NABERS, Australian property owners have a unique insight into the environmental impact of their building stock. We can now ascertain at a glance how well we are going compared with our competition, and this has driven innovation. The leaders in the sector have risen to the task and delivered exceptional improvements to  the environmental  impact of their buildings. These efforts areshowing real dividends.

The recent IPD Green Property Investment Index we now have proof of the value-add for sustainable buildings. This research shows that the industry has responded to  he information provided by NABE S ratings, with high rating buildings outperforming non-rated assets in investment metrics across the board – lowervacancies, higher rental returns  and higher  property values.

This response shows the level of trust and support that the market has invested in NABERS, which is due to close work over many years between the NSW Government and industry to build credible and reliable tools based on real market experience.

With the case for green retrofitting made by a number of market leaders, the challenge is now to inspire the rest of the market to learn from these examples and take action.

We’ve only just begun to realise the possibilities for our existing stock and a wealth of data now supports the business casefor green retrofits. Those not taking action to improve their stock are likely to get left behind - risking both their reputation and their bottom line.