This article is from the Australian Property Journal archive
CAYDON is proposing to redevelop the landmark silos in Melbourne’s Cremorne into commercial space as part of its $1 billion project The Malt District mixed use project.
Fronting Gough St, the Silo Studios will feature six levels of commercial strata office space with floor plates of 321 sqm, with potential to combine floors to create an office area of 1,733 sqm.
The development is due for completion in the second quarter of 2021 and will have views towards the MCG and be complemented by ultra modern breakout zones and meeting rooms contained within the silos.
Knight Frank’s Nick Bisset, Matthew Romanin and Tim Grant are the marketing agents for the commercial space. Bisset said strong interest is expected from creative groups looking for a funky new space in the building, in “arguably Melbourne’s most popular location”.
He said the opportunity is extremely limited with only six individual floors for sale within the development.
Romanin said owner occupiers have been a dominant purchaser in the current market with a noticeable rise in enquiry for brand new premium office between 300 sqm to 500 sqm.
Overlooking the Yarra River, The Malt District is home to the landmark silos and Nylex Clock. The Barrett Burston Richmond Maltings site was initially developed as a brewing and malting site in the middle of the nineteenth century.
The Cremorne precinct has evolved into a office hub with a tech and creatives bent. An estimated 10,000 professionals worki in the area, which is home to multinational companies including Uber, The Walt Disney Company, Tesla and Mattel.
Caydon secured a 10-year pre-commitment from software company MYOB across six levels of a $100 million nine level office building on the site, which was sold one year ago to investment firm AXA.
According to Knight Frank, demand for office space in the precinct has forced vacant rates down to around 1.5%.
