Australian investment manager Investa and a local construction and development group Built have established an investment venture to transform Australia’s ageing office stock.

Sustainable Adaptive Reuse, the ”brown-to-green” venture focuses on the challenge and opportunity of repurposing ESG-obsolete CBD assets into sustainable A-grade commercial office buildings, the companies said.

Approximately 80% of ‘mature city’ office buildings which exist today will still be in use in 2050. To meet net-zero commitments, existing commercial stock will have to be retrofitted at a rate of 3%-3.5% per year, according to the partners.

Investa’s CEO Peter Menegazzo, said the idea had already resonated with investment partners and a number were already “actively engaged in reviewing the opportunity”.

Brett Mason, CEO and managing director of Built, said: “We’ve proven the success and increased demand for a new ‘Brown to Green’ approach through our own experience with boutique developments.”

This brown-to-green venture, he said, would create an opportunity that offered a unique ability to identify, deliver and manage high-quality ESG commercial office developments.

To read the latest edition of the latest IPE Real Assets magazine click here.