HomeEnhancing Asset Performance for the Future – Electrification at 700 Collins Street
May 25, 2026
Enhancing Asset Performance for the Future – Electrification at 700 Collins Street
While the transition to a lower-carbon economy is not linear, expectations for commercial real estate continue to shift toward stronger energy performance, electrification and asset resilience. At 700 Collins Street in Melbourne, Cromwell is undertaking a broader program of capital investment to enhance the building’s long-term performance, relevance and appeal to high quality occupiers. As part of this strategy, the building is being transitioned from gas-powered systems to advanced electric technologies, including reverse-cycle heat pumps and heat recovery chillers. The project places 700 Collins Street among a small number of Melbourne CBD high-rise office buildings undertaking electrification retrofits at this scale, and among even fewer doing so while the building remains occupied.
Benefits of electrification
The upgrade is intended to improve operational efficiency, lower carbon intensity and strengthen the asset’s long-term resilience, efficiency and competitiveness.
It is also expected to remove approximately 2.28 million megajoules of natural gas from annual consumption, reducing reliance on fossil fuels and lowering energy intensity. Over time, this positions the building to benefit from grid decarbonisation and greater integration of renewable energy, supporting improved long-term energy performance.
The upgrade reinforces 700 Collins Street’s existing 5.5 Star NABERS Energy rating while aiming to lift the building’s Renewable Energy Indicator (REI) from 75% to a targeted ~99% (with the diesel generator retained). In a market where energy performance is increasingly influencing tenant demand and capital allocation, assets with strong performance credentials are better placed to attract and retain high-quality occupiers.
Proposed performance outcomes
~2.28 million MJ of natural gas removed annually
5.5-Star NABERS energy rating maintained
Targeted ~99% Renewable Energy Indicator (REI) rating
For tenants, the transition to high-efficiency electric systems enhances workplace quality through more consistent temperature control and improved indoor environmental conditions, while also supporting tenants’ own sustainability objectives – factors that are becoming increasingly important in leasing decisions.
The electrification program has been delivered through a structured, seven-stage pathway, ensuring careful consideration of building systems, infrastructure capacity, and technology selection. The works have also been sequenced to support continuity of building operations during delivery.
Electrification Pathway
McKell Building, Sydney
This approach has already been demonstrated within the portfolio. At Rawson Place in Sydney, the Group completed a “Sydney-first” electrification upgrade of the McKell Building, converting a multi-storey CBD office asset from gas to an advanced electric heat-recovery system. As the first project of its kind at this scale, it improved energy efficiency while helping future-proof the asset.
From a portfolio perspective, initiatives like this are critical in future-proofing assets against regulatory change and evolving market expectations. As ESG considerations become more embedded in investment decisions, proactively upgraded buildings are better positioned to support tenant demand, maintain long-term asset relevance, enhance investment appeal and deliver resilient long-term returns.
Ultimately, the electrification of 700 Collins Street reflects an active approach to managing and enhancing assets in response to structural market trends, supporting long-term value creation for investors.
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