Tall & Urban News

Diversified developer and fund manager Mirvac have topped out its AU$800-million (US$542-million) redevelopment above the historic Olderfleet Buildings on Melbourne’s Collins Street in recent weeks.

The 40-story office tower, which is set to provide 58,000 square meters of state-of-the-art workspace has been constructed behind the historic façade of the Olderfleet Buildings, one of the best-preserved examples of the 1880s “marvelous Melbourne” era.

The development has now topped out, combining three heritage frontages with a modern office tower and garage to the rear. It is on schedule to be completed by mid-2020.

Mirvac bought the Collins Street property from Aviva Investors in late 2013.

Mirvac general manager Simon Healy said the Olderfleet had strong interest from tenants with a range of high-caliber brands going into the tower, which is now 94 percent pre-leased, stating, “Mirvac’s vision to create one of Australia’s leading smart buildings, rising out of the heritage façade at Olderfleet, has struck a chord with the Melbourne market.”

The developer believes the end product will offer tenants an exemplar of the modern working environment, with the building integrating leading technology and sustainability.

Anchor tenant Deloitte has committed to more than 22,000 square meters of office space across 12 floors for 12 years, while law firms Norton Rose Fulbright and Lander & Rogers have also taken space along with property consultancy Urbis.

The tower will also offer childcare facilities to its workers, with Kids Club Early Learning Centers to open its first CBD center.

The building is targeting a five-star Green Star rating and five-star NABERS energy rating along with Platinum WELL Certification.

Last year Mirvac sold its $414 million (US$281 million) half-stake in the project to Singapore-listed Suntec REIT on a 4.8 percent capitalization rate. The developer already had a major presence in the blue-chip office market, owning 177 Pacific Highway in North Sydney and 25 percent of Melbourne’s Southgate complex on the Yarra River.

Mirvac is also planning another 40,000 square meter office project at 383 La Trobe Street, which was acquired for AU$122 million (US$83 million) from developer Sterling Global last year.

The La Trobe Street site currently holds approval for a 70-story apartment tower, however, Mirvac is considering a revised office project.

For more on this story, go to The Urban Developer.