Ultra-green Pixel goes on market
The private company headed by Daniel Grollo is carrying debt against the property of $5.04 million, due for repayment midyear, but it expects the sale to cover its liability.
The striking multicoloured Pixel building (above), with its facade of swivelling panels designed to deflect heat and light, is expected to fetch $6 million to $7 million. But it is unclear if Grocon will recover the full cost of its unique building.
Located at the former Carlton & United Brewery site in Carlton, the four-storey office has picked up a swag of green and design awards since it was built three years ago.
It was given the highest sustainability rating from the US Green Building Council's international LEED system and achieved a perfect 6-star Green Star as-built and design rating from the Green Building Council of Australia.
The carbon-neutral structure collects and filters rainwater from its roof and uses the grey water to irrigate reed beds on site.
It has wind turbines and sun-tracking solar panels on the roof.
Grocon, in conjunction with Boral Concrete, developed a unique green product called Pixelcrete - that minimises use of cement by mixing it with recycled aggregate - during its construction.
"We're more than comfortable, if it doesn't get the right result, to hang on to it. It's not a core asset," Grocon transactions manager Dan McLennan said.
Grocon's revenue dropped 25 per cent to $510.4 million last financial year, records show. Part of its reported 2011-12 profit of $18.1 million was from selling a Sydney office building.
Frequently Asked Questions about this Article…
Grocon is selling the award-winning Pixel building to help pay down company debt. Company documents show Grocon is carrying $5.04 million of debt against the property that is due for repayment midyear, and the company expects the sale proceeds to cover that liability.
The Pixel building is expected to fetch about $6 million to $7 million. The article notes it is unclear whether Grocon will recover the full cost of its unique building, so full cost recovery is not guaranteed.
Pixel is a four-storey office building located on the former Carlton & United Brewery site in Carlton, Melbourne. It was built around three years ago and has attracted attention for its distinctive design and sustainability features.
Pixel has picked up multiple green and design awards. It received the highest sustainability rating from the US Green Building Council's LEED system and achieved a perfect 6-star Green Star as-built and design rating from the Green Building Council of Australia.
Pixel is a carbon-neutral structure with features that include a façade of swivelling panels to deflect heat and light, rainwater collection and filtration (with grey water used to irrigate on-site reed beds), roof wind turbines, and sun-tracking solar panels.
Pixelcrete is a unique green concrete product Grocon developed in conjunction with Boral Concrete. It minimises the use of cement by mixing it with recycled aggregate, and it was used during Pixel's construction to reduce environmental impact.
Grocon's revenue fell 25% to $510.4 million in the last financial year. The company reported a 2011–12 profit of $18.1 million, partly from selling a Sydney office building. Executives say they are comfortable holding onto Pixel if the sale doesn't achieve the desired result, and they describe Pixel as "not a core asset."
Based on the article, everyday investors may note a few facts: Pixel's strong sustainability credentials and awards can add appeal, but unique construction and green features don’t guarantee full cost recovery at sale. In this case, the expected $6–7 million sale is primarily intended to cover a $5.04 million debt due midyear. Those are concrete, article-backed details investors might find relevant when assessing the market for ultra‑green properties.
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