This article is from the Australian Property Journal archive
DEVELOPER Alfasi Group is offering a half stake in a $250 million A-grade Cremorne office tower that it speculatively developed and has almost entirely filled.
Due for completion next month, the 10-storey tower at 510 Church Street is within the busy Melbourne eastern city fringe market that has attracted Domain, Seek, Uber, Tesla, Disney, and more recently Bunnings, among others, with the offer of easy connectivity and lower rents than the tight CBD market – at least, before the pandemic.
The tiered building has floor plates ranging from 2,600 sqm to 1,400 sqm, adding up to 20,000 sqm that will be occupied by tenants including the NDIS, Monash IVF, Dentsu and Kane, with a weighted average lease expiry of over seven years.
It will also include end-of-trip facilities, a rooftop offering, and basement car parking with 145 bays.
Cushman & Wakefield’s Leigh Melbourne, Nick Rathgeber, Josh Cullen and Mark Hansen have been appointed to sell the 50% interest via expressions of interest.
“510 Church Street presents a rare opportunity to partner with Alfasi Group, and we expect local and international investors will be attracted to strong tenant covenants on long leases in a brand-new state-of-the-art building,” Melbourne said.
“We are seeing the Cremorne office market emerge as a genuine competitor to the CBD, with Alfasi Group’s latest project completing the wave of well-leased developments within the precinct.”
Much of Melbourne’s recent office market activity outside of the CBD has taken place on the fringes, and particularly in the Richmond, Cremorne and Burnley area.
Charter Hall officially announced this week it had secured Australia Post as the anchor tenant for 480 Swan Street, marking one of the first moves away from the CBD by a multi-billion entity in the COVID period.
Next door will be home to a $190 million speculative commercial development that will rise 13 stories and bring 17,000 sqm of commercial offices, while Fortis showed it is backing demand for city fringe offices, adding a 1,850 sqm site in Cremorne to its development portfolio with plans for a new $130 million commercial building.
Co-workspace provider Hub Australia will open a new 3,000 sqm offering at Salta Properties and Abacus Property Group’s Industry Lanes development.
