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Dunedin’s newest apartment complex

MEDIA RELEASE: 7 MARCH 2007

Developers of Dunedin’s newest apartment complex choose local energy source to provide heating and hot water facilities

The developers of Dunedin’s newest apartment complex have chosen a local energy source, the Dunedin Energy Centre, to provide space heating and hot water facilities for its LivingSpace complex in Castle Street (Dunedin), Energy for Industry general manager Mike Suggate announced today. Energy for Industry, a business unit of Meridian Energy, owns and operates the Dunedin Energy Centre which will supply the LivingSpace complex under an energy out-sourcing contract.

The 15-year contract involves steam being supplied to the building by a dedicated underground pipeline that Energy for Industry has laid especially to supply the complex. Mike Suggate says the Dunedin Energy Centre, comprising four steam boilers with a total capacity of 30 MW (thermal) and a steam reticulation system beneath the streets of Dunedin, already supplies steam and hot water to Dunedin Hospital, Cadburys, New Zealand Towel Services, the University of Otago, the Dunedin Fire Station and a small office building.

“The Dunedin Energy Centre is a major supplier of energy to a number of large Dunedin organisations, and we’re delighted to be able to provide LivingSpace with an energy solution that suits their requirements so well. He said major savings on energy costs, the Centre’s impressive track record and other blue chip local customers were all factors in convincing LivingSpace Properties to select Energy for Industry to service its new apartment complex in Dunedin. “Energy for Industry provided us with a very cost-effective and practical solution,” said LivingSpace construction manager, Gregor Ferguson.

“They also installed and now maintain all the necessary pipework and plant - that’s another saving and something we don’t have to worry about - and we have the comfort of working with a company that services some big customers in the area. “Having that ‘trust factor’ in a potential partner is a major influencer in any business decision.

“We’re an innovative company ourselves and we looked for the best energy solution for the project. Energy for Industry was the answer,” says Gregor Ferguson, who has been in the building industry for more than 23 years. Another plus for LivingSpace is that Energy for Industry takes full responsibility for maintaining regular and secure energy supplies to the apartment complex.

“That’s part of the contract,” says Mr Ferguson. “While space and water heating are obviously critical components for our tenants, they are not our core business. “It therefore makes sense operationally to outsource that aspect of our business so we can focus on adding value in other areas,” he said. The 128-apartment building has been developed through an $8.5 million conversion of a half-century old factory.

The historic three storey building was significantly strengthened to take an extra two storeys and an annex, which contains some apartments, common cooking and toilet facilities, a movie theatre and breakout areas for AV and computer suites. The completed development is just under 5000 square metres in area.

ENDS


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