GREEN DEVELOPER SEES RED ON LAWS

Fivex Commercial Property opened one of Australia’s most sustainable new developments on Tuesday 13 March, 2007 – a landmark in Sydney’s Double Bay that harvests all of its own water, recycles all its waste water and saves about 150 tonnes in greenhouse gas emissions every year.

In one way the opening will be a celebration. Sustainable buildings are possible. In another way the party is a condemnation of government policy. Only an utterly committed developer could proceed in the face of policy failings and bureaucratic hurdles.

Fivex Commercial Property has done a number of property developments but for this one, on the former Westpac site on New South Head Road, they took on the challenge of sustainability, two years before the Al Gore roadshow got underway.

Why? “Personal conviction,” said Lesli Berger, General Manager of Fivex Commercial Property. “I used to be a Woollahra Councillor and I became interested in sustainable development and why people didn’t do it.

“The reason is simple – it is more expensive. But because we are a private company not subject to shareholders, we said ‘let’s go ahead’.” The only stipulation from family patriarch Joshua Berger was that the project not lose money.

The initial sustainability budget was $200, 000 but that soon jumped to $500,000 – about 10 per cent of the construction cost – and none of the extra cost has been recouped in additional income from tenants.

“Energy and water are so cheap that there is no economic justification for it,” Mr Berger said. “That is where there is a massive failure of state government policy in my view.”

He said the change to sustainable development was profound but relatively simple. But legislative change was needed to enforce it.

“The amount of red tape is unbelievable. If a developer wants to do the right thing it should be easier. It is not,” he said.

“While the politicians talk about sustainable development, the rules in place are a disincentive to going green. In fact, the effect is the opposite. Those doing the right thing are punished.

Fivex Commercial Property was still negotiating with Woollahra Council over a $1.3 million parking levy demanded because the project, which is on a main bus route and a short walk from the rail line, did not include any parking.

Fivex Commercial Property was also negotiating with Energy Australia, which demanded a new kiosk power station on the site – taking up about $700, 000 worth of land – even though the building uses less power than its smaller predecessor.

Nevertheless, Mr Berger said the building had been a success – “environmentally and economically sustainable.”

The project’s sustainability coach, Michael Mobbs, said the development exceeded best practice in several areas and was “clearly Australia’s most sustainable multi-tenanted building.”

Eeles Trelease Architects and contractor Built had not only delivered a sustainable building, he said, but one that was a “light and airy” landmark and “on time and on budget.”

And in a tough leasing market, Colliers International’s Steve Bowrey has signed up fashion label Cue, Italian fashion house Varino and, for the upper two floors, a new private banking operation for ANZ Bank.

Leading the celebrations tonight will be federal Minister for the Environment and Water Resources Malcolm Turnbull and broadcaster Alan Jones.

The Australian Financial Review: Tuesday 13 ^th March, 2007

Robert Harley