Diversified developer and fund manager Mirvac has topped out its $800 million-plus redevelopment above the historic Olderfleet Buildings on Melbourne's Collins Street.
The 40-storey premium office tower, which provides 58,000sq m of state-of-the-art workspace has been constructed behind the historic facade of the Olderfleet Buildings, one of the best-preserved examples of the “marvellous Melbourne” era of the 1890s.
The development has now topped out, combining three heritage frontages with a modern office tower and car park 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-calibre brands going into the tower, which is now 94 per cent pre-leased.
“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 modern working environments, the building integrates leading technology, sustainability and amenities that will include a wellness offering and childcare centre.
Anchor tenant Deloitte has committed to more than 22,000sq m 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 Centres to open its first CBD centre.
The building is targeting a five-star Green Star rating and five-star NABERS energy rating along with Platinum WELL Certification.
Mirvac last year sold down a $414 million half-stake in the project to Singapore-listed Suntec REIT on a tight capitalisation rate of 4.8 per cent.
It already had a major presence in the blue-chip office market, owning 177 Pacific Highway in North Sydney and 25 per cent of Melbourne’s Southgate complex on the Yarra River.
Mirvac’s $8 billion national office portfolio is currently weighted 58 per cent to 28 per cent in favour of Sydney over Melbourne.
The developer expects net effective rental growth to remain positive in Sydney’s CBD before slowing, while Melbourne’s CBD rental growth was expected to exceed Sydney in coming cycles.
Mirvac is also planning another 40,000sq m office project at 383 La Trobe Street, which it acquired for $122 million from developer Sterling Global last year.
The La Trobe Street site currently holds approval for a 70-storey apartment tower, however, Mirvac is understood to be considering a revised office project.