Converting offices to aged care way of the future
LOS ANGELES: An Australian-first conversion of a commercial office tower into vertical aged care could pave the way for more repurposing projects to help tackle housing shortages.
A leading architect involved in the groundbreaking design has called for more government incentives to spur on the practice, including by taking into account the environmental benefits of repurposing buildings rather than demolishing them.
The 15-storey Alba, which opened in South Melbourne after a $125m development, had been the commercial headquarters of healthcare provider and building owner Australian Unity.
It now includes 95 residential care suites and 60 apartments for independent living.
Fender Katsilidis principal Jessica Lee said some apartments in Melbourne’s CBD had been built by repurposing office buildings but she could not find another aged-care facility like this.
She said other asset owners were “exploring alternatives” to convert buildings as a push for return to work had stalled, but not all buildings were suitable for housing.
“Not everybody has, I guess the bones for it in terms of a building,” Ms Lee said.
Due to market challenges for the cost of major repurposing – the Alba gave Australian Unity a 6 per cent return compared to if they tore the building down and built a new one – other options were being favoured.
“Refurbishing premium office towers into something that’s even better … entices people to come back into the office,” she said.
Structural integrity of the building, the size of the block and access to natural light, and& ventilation, were among factors that would determine whether a major conversion could proceed.
New incentives should be considered by governments, Ms Lee said, including the huge environmental benefits of avoiding knocking down and rebuilding. “The amount of emissions avoided for the Alba was … a staggering number, 3.3 millionkilograms,” she said. “It’s not like they (Australian Unity) could get an incentive or offset.”
Options that should be explored include whether extra storeys could be added to buildings if asset owners avoided knockdowns, Ms Lee said, which would also reduce labour needs in a tight market.
Alba resident and former South Melbourne councillor, Julie Johnson, said she loved living the high life in an area she grew up in.
“I wanted to stay here (in South Melbourne), it’s very important, I have lived here my whole life,” she said. “The view over Melbourne is really stunning.”