This article is from the Australian Property Journal archive
DIVERSIFIED developer Time & Place has partnered with construction specialist Hickory to acquire 8,000 sqm of land in Sydney’s Alexandria for a whopping $52.5 million which has been slated for a new office precinct, as it witnesses a demand resurgence in the fringe markets.
The inner south site is located at 23-27 Bourke Road and 4-43 Bowden Street in a B6 zone and was bought with approved stage one DA in place to transform the site into an office precinct.
Time & Place will commence construction on the project ahead of the pre-leasing process, confident in demand for office space continuing after 18 months of rapid growth, in part due to significant investment from Council, it said.
Caltex recently moved its headquarters out of the CBD into Alexandria, saving shareholders an estimated $50 million over 10 years by capitalising on the sharper rents offered in the area.
Meanwhile, Sydney-based Markham last month bought 74 O’Riordan Street for $30.5 million. The building has 3,851 sqm of offices fully occupied by ASX-listed company Wisetech Global Limited on a five year term, and is close to Markham’s proposed 20,000 sqm campus-style office complex at 22 O’Riordan Street, which it bought two years ago.
ASX-listed group Charter Hall has just bought the Australian Red Cross Lifeblood headquarters in the suburb for $159 million.
“Gone are the days of tightly packed offices in the middle of a crowded city. We are conscious of the changing priorities amongst corporate tenants, and we want to ensure our latest offering in Alexandria reflects this,” Time & Place director, Tim Price said.
“Plus, beyond extra space, moving out of the CBD has huge ramifications on a business’s overheads through its competitive pricing.
“Location is a huge factor for us when we’re planning our projects. Alexandria is full of Sydney’s busiest cafes, in fact, its population almost doubles over the weekend with people lining up for brunch. We want to capitalise on this and deliver a commercial precinct which will see it thriving all week long.”
He added that Alexandria’s “evolution into a contemporary destination” has been noticed by corporates and creatives alike. Nearby are Judith Neilson’s critically lauded White Rabbit gallery, and popular hospitality spots Mecca and The Grounds of Alexandria.
In 2020, the developer purchased a 940 sqm site in inner-city Melbourne’s Southbank, also in partnership with Hickory, and a residential site in Melbourne’s leafy Glen Iris that it will deliver in conjunction with Woolworths.
This expansion into Sydney’s commercial market comes on the heels of its success in East Melbourne, where it is currently developing Victoria Place, a luxury commercial building in a prominent location near Fitzroy Gardens.
The Alexandria deal was brokered by Colliers’ Michael Crombie.
The project’s design was produced by John Wardle Architects and selected through a design competition run by City of Sydney and Skylife. The architectural scheme is informed by Alexandria’s industrial past, aiming to create an experiential precinct that encourages a workplace community.
Revised plans are set to be submitted in August. Wardle’s original vision included provisions for a three storey building comprised of 13,500 sqm of commercial, 3,000 sqm of retail, and 172 car spaces. The acquisition by Time & Place will see some amendments to the plans, which will largely remain in alignment with the existing concept.
Time & Place suggested the changes would be informed by the demands of a post-pandemic world, with large floorplates that offer significantly more space per employee an increasingly important factor.
Marking his first major project in Sydney, Wardle described the design as “a precinct with an abundance of landscape and urban experiences that will become a new gateway to the Alexandria neighbourhood”.
Hickory co-founder Michael Argyrou likened the project’s potential to the group’s Market Lane project.
Crombie said the office market is experiencing a period of rapid change.
“We are seeing a major resurgence of occupiers from the CBD and fringe markets coming to Alexandria.
“More occupiers today are looking for a cultural change; workers are bored of the CBD and want more – more space, more light and better value for money.” Crombie said.
