Centuria and Energy Bay Strike Australia's Largest Commercial Landlord Renewable Energy Deal in $430 Million Partnership

Centuria Capital Group and Energy Bay have signed what the parties describe as the largest renewable energy transaction by a commercial property landlord in Australia, a 30-year partnership that will see Energy Bay invest approximately $430 million to install solar panels, battery storage and embedded electricity networks across up to 240 Centuria-controlled assets.

The agreement, announced October 1, 2026, covers office, industrial, retail and healthcare properties within Centuria's Australian portfolio. Energy Bay will fund all capital expenditure required to deploy roughly 70 megawatts of solar capacity and approximately 300 megawatt-hours of Battery Energy Storage Systems, with no upfront capital required from Centuria or its tenants.

Deal Structure and Timeline

Under the agreement, Energy Bay will lease roof space and operate embedded electricity networks across participating Centuria assets for 30 years. The infrastructure rollout will proceed in stages over a seven-year period, beginning with properties that already have relevant electrical infrastructure in place.

Approximately 18 percent of the identified assets already contain embedded network infrastructure and are expected to transition into the Energy Bay program in the near term, subject to conditions and implementation requirements. Rental income from those initial assets is anticipated to begin during the first half of fiscal year 2027. Remaining properties identified for new embedded networks and solar and battery installations are subject to tenant consents, planning approvals and due diligence before work can commence.

The lease structure is expected to generate additional revenue for Centuria by converting rooftop and electrical infrastructure into a contracted income source. That additional income is intended to increase participating properties' net operating income and may also contribute management-fee income to Centuria. Tenants that elect to purchase electricity from Energy Bay are expected to receive lower-cost power sourced from the onsite solar and battery systems.

Emissions Targets and Renewable Energy Certificates

The partnership is also central to Centuria's emissions reduction strategy. The combined solar and battery infrastructure is expected to generate approximately 85,000 megawatt-hours of renewable electricity each year across the identified portfolio. Under Australia's Renewable Energy (Electricity) Act 2000, each megawatt-hour of eligible renewable generation creates one Large-scale Generation Certificate, or LGC. Those certificates can be used by corporations to reduce or eliminate reported market-based Scope 2 emissions.

Centuria said the LGCs generated through the program are expected to be retired to support zero Scope 2 emission targets for Centuria Industrial REIT and Centuria Office REIT by 2028, and for Centuria Capital Group by 2035. The targets apply to Scope 2 emissions from existing assets under the operational control of each entity.

Jason Huljich, Centuria Joint CEO, said the partnership demonstrates how sustainability initiatives can deliver commercial outcomes alongside environmental ones.

"We believe this partnership with Energy Bay demonstrates how sustainability initiatives can also deliver meaningful commercial outcomes across the property value chain," Huljich said. "In addition to increasing onsite renewable electricity generation and progressing our scope 2 emission reduction targets, the program is expected to create long-term income opportunities across participating properties, provide access to more competitive energy solutions for tenants who elect to participate and further enhance the resilience and attractiveness of our real estate portfolio."

Huljich added: "We believe the agreement reflects an innovative approach to unlocking additional value from existing property infrastructure while continuing to meet the evolving needs of tenants and investors. It is a pleasure to partner with Energy Bay and we look forward to working together as the program progresses."

Energy Bay's Role and Investment Commitment

Energy Bay will serve as the infrastructure investor, installer and operator throughout the partnership. The company is responsible for deploying the approximately $430 million of capital required to install solar panels, batteries and associated infrastructure upgrades across the Centuria portfolio over the seven-year build-out period.

James Doyle, Energy Bay CEO, said the agreement sets a new standard for renewable energy adoption in the Australian commercial property sector.

"Centuria's commitment sets a new benchmark for renewable energy adoption across the nation's commercial property sector and Energy Bay is proud to lead this shift," Doyle said. "This agreement demonstrates how large-scale infrastructure partnerships can deliver meaningful emissions reductions while creating long-term value across the industry. This partnership enables Energy Bay to deploy rooftop solar assets, onsite battery infrastructure and operate embedded network systems across Centuria's identified portfolio, delivering cost and sustainability benefits to tenants."

Portfolio Context and Market Implications

Centuria manages more than $22 billion of assets under management across Australia and New Zealand, spanning listed and unlisted real estate equity funds, real estate finance and investment bonds. The group's real estate funds-management platform encompasses approximately 400 properties across 102 funds, with platform occupancy of approximately 95 percent and a weighted-average lease expiry of roughly 5.5 years.

The Energy Bay partnership converts underused building infrastructure — primarily rooftops and onsite electrical systems — into a potential source of recurring income. Because Energy Bay is funding the full capital program, Centuria avoids the need to allocate its own balance sheet to the approximately $430 million construction effort.

The arrangement also addresses growing pressure from commercial tenants facing electricity-price volatility and rising expectations around emissions reporting. Onsite generation and battery storage can reduce exposure to grid prices and offer tenants an energy product tied directly to the building, a consideration that is particularly relevant for industrial, retail and healthcare properties with substantial or continuous electricity loads.

The rollout figure of up to 240 properties is based on completion of infrastructure works across approximately 78 percent of identified suitable assets, which remain subject to development approvals and other due diligence processes. Individual participating properties have not been identified in the announcement.

Sources

Centuria Capital Group — Centuria partners with Energy Bay on renewable energy