Mirvac electrifies fifth office building as tenants seek to decarbonise

Co-owned by Mirvac and M&G Real Estate, EY Centre - which holds 6 Star Green Star and 5.5 star NABERS Energy ratings - has been upgraded by replacing gas-based systems with high-efficiency electric heating and hot water, including the use of natural refrigerants¹ to reduce environmental impact.

Mirvac's Chief Asset Management Officer, Victoria Tavendale, said the project was an important step in Mirvac's ambition to decarbonise by 2030, while demonstrating how existing Premium-grade assets can be repositioned to meet changing tenant expectations.

Ms Tavendale said: "Projects like this are critical to how we decarbonise our portfolio over time. They allow us to reduce our reliance on offsets, respond to tenant demand and position our assets for the future.

"By removing gas from core building systems, we're reducing emissions and ensuring the asset remains competitive for tenants with net‑zero commitments."

Electrification is being driven by growing demand from corporate occupiers, with industry research by JLL showing around 85 per cent of large Sydney CBD tenants now have net‑zero targets, many with deadlines by 2030. At the same time, supply of all‑electric office space remains limited, creating a clear opportunity for commercial property owners who act early.²

"We're seeing sustainability move from a differentiator to a core requirement in leasing decisions," Ms Tavendale said.

Industry data also shows that buildings with strong sustainability credentials can support stronger leasing outcomes and long-term asset performance, reinforcing the business case for electrification.

M&G Real Estate's Head of Australia, Alex Banzic, said: "As long-term co-owners of EY Centre, M&G is focused on supporting high-quality workplaces that respond to changing occupier expectations while making meaningful progress on sustainability and decarbonisation. The electrification of EY Centre builds on the asset's strong track record in innovation and sustainability, helping ensure it remains relevant, resilient and attractive to occupiers over the long term."

Mirvac's CEO, Investment, Richard Seddon said: "Investing in electrification is key to achieving our net positive carbon target, and at the same time, helps us to maintain long-term asset value and ensure our portfolio remains aligned with tenant demand for low-carbon buildings", he said.

"EY Centre forms part of Mirvac's wider program to electrify its office portfolio, which is now embedded into Mirvac's portfolio-wide strategy and strategic asset planning processes."

Since 2019, Mirvac has committed to delivering all‑electric new office developments, which includes 80 Ann Street in Brisbane, alongside targeted upgrades to existing assets.

This includes:

• fully electrified buildings at fringe CBD assets, including Bay Centre, One Darling Island and 101 Miller Street in Sydney
• gas removal / roll out of electric heat pumps and system upgrades at assets including 275 Kent Street and 8 Chifley Square in Sydney and Riverside Quay in Melbourne
• procuring 100 per cent renewable electricity.

Further assets are planned to transition by 2030 as part of Mirvac's staged electrification program.

1. Natural refrigerants are substances that occur in nature (such as carbon dioxide and hydrocarbons like propane), whereas synthetic refrigerants are manufactured chemical compounds (like hydrofluorocarbons and hydrofluoroolefins). Natural refrigerants are crucial for decarbonisation because they have near-zero Global Warming Potential (GWP), do not contain synthetic chemicals and have high thermodynamic efficiency, drastically cutting both direct emissions and energy use.

2. https://www.jll.com/en-au/insights/decarbonising-real-estate.