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News release


197 St Georges Terrace achieves 5 star NABERS Energy rating prior to the 12-month completion anniversary

PERTH, 28 November 2013 – Perth’s iconic 197 St Georges Terrace property (formerly Governor Stirling Tower) has exceeded expectations by achieving a 5 star NABERS Energy rating within 12 months of practical completion of the refurbishment works. 

The site, which also comprises, 7,263sqm at 5 Mill Street and 6234sqm at 1 Mill Street, is in the final stages of a $50 million 40,000sqm refurbishment project, one of the city’s largest office refurbishment campaigns. 

The refurbishment program provided for a new electrical metering network, mechanical services upgrade, new Building Management System (BMS), lift modernisation, end of trip facilities, lighting system that including LED lighting technology throughout the common areas.

When GDI Property Group purchased the property from the Commonwealth Office Property Fund, the buildings had a 3 star NABERS Energy Rating. The upgrades were initially designed to achieve a 4.5 star NABERS Energy rating.  

The property’s building efficiency consultant, Damien Moran, from HFM Asset management said that 197 St Georges Terrace underwent a highly intrusive and technical building services retrofit whilst remaining operational.

“It can often take 16 to 18 months post practical completion to achieve targeted performance outcomes. To significantly exceed the targeted 4.5 star NABERS Energy rating prior to the 12 month completion anniversary is an excellent outcome,” said Mr Moran.

A 5 star NABERS Energy base building rating demonstrates best practice and market leading performance in energy efficiency benchmarked against current market performance and assessed on actual building performance over a 12 month period.

GDI has also invested several hundred thousand dollars in green-scaping the existing walkway between the buildings resulting in quality vibrant amenity for tenants and the public. The area, which is known as Mill Green, unites all three buildings via a central grassed area. 

GDI Managing Director, Steve Gillard said the development had been one of the biggest of its kind undertaken in the CBD and had transformed the significant site into a premium office location offering ergonomic and energy efficiencies, as well as a welcoming passive recreational space. 

“We are very proud of it. The refurbishment was detailed and complex with tight timeframes and deliverables with various stakeholders being the State Government which occupied the building and were vacating in stages over many months, our refurbishment program and incoming tenants. A lot of hard work was involved and we could not have achieved this result without having the right team in place, such as our Builder Bluesight, the Resolve Group, HFM Asset Management, and the Jones Lang LaSalle management team,” said Mr Gillard. 

Jones Lang LaSalle recently reported that Perth’s prime vacancy rate of 8 per cent meant than tenants had the opportunity to look for alternate space or to trade up rather than renewing, which was possibly the only option they had when the market was full. The Perth CBD has a significant number of buildings more than 20 years old, some of which are not able to keep pace with modern workplace occupancy requirements. 

“Perth’s CBD office market has moved further in favour of tenants in the last 12 months,” said Leasing Director Nick Van Helden of Jones Lang LaSalle.

“The market will see some new buildings available in 2014-2015 which will provide tenants with the opportunity to consider their options and increase space densities and utilisation rates. 

Mr Van Helden said 197 St Georges Terrace represents a very strategic opportunity in the market and provides A-Grade office accommodation in the Terrace’s prestigious west end with fantastic access to the freeway and public transport. 

Mr Van Helden said that 25 of the building’s 28 floors of the 197 St Georges Terrace building have been occupied by AMEC, Chevron, Clough CB&I, Clyde & Co Solicitors, Corporate Travel Management, Aker Solution, Liberty Serviced Offices, Solomon Bros Solicitors, Primus, Thinc Project, and the Independent Market Operator (IMO).

Mr Van Helden said he was confident that the remaining three floors at the top of the building would receive strong interest as the market improves. 5 Mill Street has also exceeded expectations compared to its peers.  Over the last eight months securing new direct leases of approximately 2,500sqm to tenants such as Wesfarmers, IA Group, Accenture, ING Bank, TAL and Wood MacKenzie. 

“The building provides ground floor retail and offices as well as 10 upper levels of office space. 1782sqm is still available at 5 Mill Street,” said Van Helden.

The four level office building located at 1 Mill Street comprises more than 6200sqm of space offering large office floor plates of up to 2000m2, with a central services core and ample basement parking.  

“The whole building is vacant and represents the most strategic whole building opportunity in the market,” said Mr Van Helden.