Urbis Melbourne to move into new state-of-the-art Olderfleet building on Collins Street

“

The latest tenant to sign up for a pre-commitment is property consultancy Urbis

Diversified developer and fund manager Mirvac is inching closer to a full house in its $800 million-plus redevelopment above the historic Olderfleet Buildings on Melbourne’s Collins Street.

The latest tenant to sign up for a pre-commitment is property consultancy Urbis, which is taking out 4100 square metres across levels 10, 11 and parts of 12.

That commitment takes the tower to 88 per cent leased, as Urbis joins Norton Rose Fulbright, Lander and Rogers and anchor tenant Deloitte.

“For us it’s a great outcome to be 88 per cent leased on the office component of the development and we are a little bit more than 12 months out from practical completion,” Mirvac development director Frank Lonetti told The Australian Financial Review.

“With these large developments – and this one is quite large with 55,000 square metres of office – you start those buildings and you hope that by completion you will be able to attract more tenants.”

“

Our workplaces of the future will facilitate greater levels of collaboration, innovation and flexibility for our people and clients

Benjamin Pollack View Profile

Just five floors remain in the 40-storey tower. The asking price for net face rents at the top of the tower has tipped past $800 per square metre, according to industry sources.

The commitment from Deloitte to 477 Collins Street three years agoestablished the anchor tenancy needed to make the project stack up.

Colliers International and CBRE have been handling leasing for the tower.

Urbis is relocating its Melbourne head office from 120 Collins Street at the so-called Paris end to Olderfleet, which is between William and King streets.

“

The Grimshaw Architects-designed project incorporates the stunning facade of the “marvellous Melbourne” era Olderfleet Buildings

Strategy review

The property firm plumped for the Olderfleet and its large, efficient floors following its recent national workplace strategy review with WMK Architects.

“Our workplaces of the future will facilitate greater levels of collaboration, innovation and flexibility for our people and clients,” said chief executive Ben Pollack.

The Grimshaw Architects-designed project incorporates the stunning facade of the “marvellous Melbourne” era Olderfleet Buildings. A terrace wraps around the rear and side of the new tower, allowing sky-high views over Melbourne, along with a 30-metre-high atrium just off Collins Street.

Two years ago Mirvac sold a half stake in the development to Singapore’s Suntec REIT for $414 million, providing a five-year rental guarantee on any unlet office space from the date of practical completion.

“There is a lot of risk in commercial development if you are selling down. You potentially have to have that rent guarantee in place to give the support investors want.” Mr Lonetti said.

“For us being at 88 per cent, that risk has been greatly reduced.”

The Olderfleet project is on schedule to be completed by 2020.

Meanwhile, Mirvac has begun evaluating a site on La Trobe, the home of the Australian Federal Police, which it acquired for $122 million from developer Sterling Global last year.

The La Trobe property comes with approval for a dramatically styled 70-storey apartment tower designed by French architect Jean Nouvel but Mirvac is now considering how much office space to include in a revised plan.

This article was first published by the Australian Financial Review, Author: Nick Lenaghan.

To read the full article, click here.

Image source: Australian Financial Review, Nick Lenaghan