Super fund investor and developer ISPT has revealed that TAL, one of Australia's top life insurance providers in 2022, will be the anchor tenant of an office tower in Melbourne, which is set for a $150 million revamp to become sustainable.
In an exclusive Australian Financial Review (AFR) report, ISPT revealed it will transform the 1970s office tower at 500 Bourke Street in Melbourne into a 6-star Green Star and 5.5-star NABERS energy rated commercial building. The project is expected to be completed next year, and TAL has already pre-committed to leasing 6,360 square metres of office space, while ISPT will take a further two floors.
Designed by Fender Katsalidis Architects, the project aims to retain the tower's shell and facade, but transform the interior into a “brand-new commercial building”. It will operate using renewable energy and become carbon-neutral, even during the construction phase, to compete for tenants alongside new towers with high sustainability ratings, such as Cbus Property's 435 Bourke Street tower.
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ISPT further stated that TAL has secured the former National Australia Bank (NAB) building's signage rights after the bank moved to a new office building co-owned by ISPT and Brookfield at 405 Bourke Street.
Commenting on the tower's sustainable transformation, Nicole Ward, general manager of commercial services at ISPT, told AFR: “We spent a significant amount of time studying the various uses and opportunities for the site.
“We are [also] reimagining the very successful dining precinct [at 500 Bourke Street] to create a multi-level, open-air terraced piazza that will bring together our existing retail partners MoVida Aqui and Rosa's Canteen, along with a host of new retailers, to create a stand-alone destinational precinct that will connect and breathe new life into the centre of Melbourne CBD.”
Insurance companies have been leaning towards sustainable initiatives and projects these past few years as climate change threatens the industry. For example, in 2021, major insurers teamed up to establish Net-Zero Insurance Alliance (NZIA), convened by the United Nations Environment Programme's Principles for Sustainable Insurance Initiative.
