Cbus Property has won approval from Victorian state planners for a $1 billion-plus office tower that will reach 49-storeys in Melbourne’s CBD.
The 59,000sq m tower, that will straddle four addresses around the corner of Bourke and Queen streets, was signed off by Victorian planning minister Richard Wynne following a lengthy application period.
The decision follows Melbourne city planning officials green-lighting the downsized building, originally intended to have 58-storeys, in October.
The Bates-Smart designed building, dubbed 435 Bourke Street, is one of the first to be approved under the Victorian government's C270 amendment, which requires developers to meet stricter density, separation and public provision conditions.
These new regulations have resulted in a tower that will see floorplates range between 1,300 and 1,700 square metres.
“The smaller floorplates within the building are not your standard floorplates,” Cbus Property chief executive Adrian Pozzo told The Urban Developer.
“Melbourne used to work to anything between 1,500-2,000 square metres.”
“We are pitching to tenants looking for 3,000-8,000sq m who will work vertically across multiple floors of the 1,500sq m floorplates to meet their needs.”
The commercial precinct, which is anticipated to serve as a vertical village for more than 5,500 city workers, is targeting a 6-star Green Star rating, 5.5-star NABERS Energy rating and a Platinum WELL rating—and will include a four-level wellness hub.
“Office vacancy rates in Melbourne’s CBD are at decade lows and there is little to no office space in the pipeline beyond 2023 so we are looking forward to sating some of this appetite with 435 Bourke Street,” Pozzo said.
“We are aiming to be ahead of the curb by designing a building with a lot of forethought today to ensure that will meet occupant needs when it is finished in 2023.
“We are a long-term holder of assets with 99.5 per cent of our assets leased.
“We're not banking on yield contraction across Melbourne's CBD, we bank on our portfolio on the basis of rental growth and tenants remaining with us.”
The tower will form part of a new centre point in the Hoddle Grid and will feature multiple landscaped terraces providing an outlook across the Yarra River and iconic CBD landmarks, such as the MCG and Port Phillip Bay.
Demolition of the site’s existing infrastructure has commenced, with construction completion slated for 2023.