Deague Group Buys South Melbourne Site for 7-Storey Tower

Privately-owned Victorian developer the Deague Group has acquired a 4000 sq m site in South Melbourne which has approval for a 7-level, 15,000 sq m office tower.

The $24.65 million purchase of the site at 81-109 Moray Street has plans designed by architects Rothelowman for a $150 million office development.

Hotel-style amenities will be incorporated into the office building with construction due to start at the end of 2017.

"We are going to bring our experience in the hotel sector in what is a first for the Australian market being a 'wellness' office building, providing tenants with reflection gardens, fresh oxygen being pumped into the state-of-the-art gymnasium, and a six-star end of trip facility," chief executive Will Deague said in the Australian Financial Review.

"We are also exploring what we believe is a first in any office building whereby we have a range of hotel style accommodation facilities which can be occupied by tenants of the building only."Deague group plans to add it to its existing Kings Business Park located on the other side of Kings Way which consists of five buildings and 33,000sq m of office space.

The seller was a Monaco-based vendor. The agents were CBRE and Dixon Kestles.

Deague Group has been responsible for the Art Series Hotels and the Deague family is currently involved in the redevelopment of Brisbane’s Howard Smith Wharves.

Image: Artist's impression of office tower