Toronto office retrofit first to receive IREE certification

Key Takeaways:

• The downtown Toronto retrofit is by developer Dream.
• The building is part of a group of 19 Dream properties in Ontario and Saskatchewan which received a $136.6 million investment from the CIB.
• Officials say IREE certification is encouraging a standardized process of developing and financing projects.

The Whole Story:

A redevelopment in Toronto is the first retrofit project financed by the CIB to achieve Investor Ready Energy Efficiency (IREE) certification.

366 Bay St. by developer Dream is situated in Toronto’s financial core. It features a newly renovated modern lobby and suites for office tenants. It has high efficiency HVAC systems, 24/7 indoor air quality monitoring, a state-of-the-art energy management system and a building automation system. 

IREE certification is part of the Canada Infrastructure Bank’s (CIB) Building Retrofits Initiative and is administered through the Canada Green Building Council (CAGBC). Officials say the goal of the certification is to increase investor confidence by providing third-party verification that retrofit projects meet desired energy targets.

Officials noted that as the first certified building financed by one of the CIB’s large-scale decarbonization investments, Dream’s 366 Bay St. redevelopment represents an important milestone and one of many retrofit projects to come that will be IREE certified. The CIB’s initiative finances the capital costs of retrofits, using energy savings and operating cost savings for repayment.

The building is part of a group of 19 Dream properties in Ontario and Saskatchewan which received a $136.6 million investment from the CIB. The building retrofits will see approximately 1,500 jobs created and the decarbonization and modernization of buildings where 15,000 employees work.

CIB officials added that by requiring IREE certification, they are encouraging a standardized process of developing and financing projects and helping to establish energy retrofit investments as a distinct asset class.

“Our green infrastructure investments are expediting the decarbonization of buildings across Canada,” said Ehren Cory, CIB CEO. “By providing attractive financing options and partnering with the private sector, we can serve as the link to ensure meaningful action is taken to enhance energy efficiency of buildings. IREE certification is our standard to finance retrofit projects and build positive outcomes for Canadians.”

Dream is a developer of office and residential assets in Toronto, owns stabilized income generating assets in both Canada and the U.S., and has an established asset management business. They also develop land and residential assets in Western Canada. Dream expects to generate more recurring income in the future as its urban development properties are completed and held for the long term.