This article is from the Australian Property Journal archive
ASX-listed GPT Group has completed its $272 million transformation of the former ANZ global headquarters and neo-gothic buildings at the corner of Queen and Collins streets in the Melbourne CBD, and is hoping to entice workers back to the city in the coming months.
Queen & Collins consists of 34,000 sqm of A-grade office space, and the refurbishment by Probuild evolved the 34-storey tower and delivered upgrades to heritage buildings at 380 Collins Street and 90 Queen Street.
Kerstin Thompson Architects recalibrated the ground plane to create a civic, retail and commercial environment, featuring Venetian-inspired campiello spaces.
Office spaces designed by BVN Architecture offer bursts of pink, rich marble and deco styling, alongside integrated retail and hospitality. Tech firms including international pay later sensation Afterpay and ELMO Software have both signed up space in the building, taking 4,800 sqm and 1,800 sqm respectively, while global recruitment consultancy Robert Walters and engineering consultants Arcadis have also committed to space.
“When Melbourne emerges from lockdown, workers will return to the city as has occurred after periods of change before. Our tenants are telling us that amenity-packed offices that service the social and collaborative benefits of being at work are what they want – this is what Queen & Collins delivers in spades,” Martin Ritchie, fund manager of owner, the GPT Wholesale Office Fund said.
“New and flexible commercial assets like Queen & Collins will play a critical role in enticing workers back into our cities, and champion a considered mix of internal amenity and connectivity to broader social infrastructure in order to do so.”
Completion comes as new JLL data shows that while the Melbourne CBD recorded positive net absorption of 24,100 sqm in the September quarter, the vacancy rate increased to 15.0%, while office occupancy levels languished at just 6% in September amid heavy ongoing movement and work restrictions according to the Property Council.
BIS Oxford Economics believes supply additions are “far and away” the driving force behind fast-growing vacancy rates in the hard-hit Sydney and Melbourne CBD office markets. Much of Melbourne’s office transaction activity throughout 2021 has been focused around city fringe locations such as Cremorne and Richmond, considered to be more affordable and easily connected by transport linkages.
To combat this, customers at Queen & Collins will have access to a concierge service, end-of-trip facilities, and a collection of spaces featuring bookable meeting facilities and shared third space amenity that is open to businesses based outside of the building to host external clients, conduct team workshops, or host product launches and catered lunches.
Hospitality amenity includes a new 135-seat restaurant within the gothic architecture of the Cathedral Room – the former trading floor of the Melbourne Stock Exchange – to be operated by NOMAD Group, while a 150 sqm subterranean bar, and a further 1,100 sqm of retail amenity has also been included. Rustica Bakery is also opening a site.
GPT acquired the asset in 2016 and opted for a major refurbishment rather than pursue a minor refresh of the existing building. The development has achieved a 6 Star Green Star – Design rating.
“Choosing to renovate Queen & Collins, as well as operate the precinct with 100% renewable electricity, has helped to ensure that this asset will have one of the lowest carbon footprints in the city,” said the GPT Group’s head of office and logistics, Matthew Faddy.
GPT 12 months ago received development consent from the Department of Planning for two office towers on Flinders Lane in the Melbourne CBD with an end value of $500 million. The 15-level and 39-level towers will have 29,000 sqm of office space.
