This article is from the Australian Property Journal archive
CROMWELL Property Group has bulked up plans for a new office tower at 475 Victoria Ave, lodging an amended development application that takes the cost of the Chatswood project to $123 million.
Existing plans include two office towers of 14 storeys and a new 4.5-star, 156-room hotel. They now feature a third office tower rising to 11 storeys, initially five levels per the original DA, and will see floorspace more than doubling from 3,148 sqm to approximately 6,500 sqm.
Additionally, a relocated entry and lobby on Victoria Ave including cafe retail space will allow for greater street front activation at the new tower.
The expanded plans show faith in the inner Sydney and metropolitan office markets, despite the existential crisis facing the office sector as employees and businesses settle into new working arrangements. Chatswood’s office vacant rate was at 3.7% in January, among the tightest non-CBD rates in the country according to the Property Council of Australia, but increased to 8.8% as of July.
“COVID-19 and its impact on people’s travel to work has resulted in a rethinking of the modern workplace,” Cromwell’s head of property, Bobby Binning said.
“The improvements are designed to benefit existing and future tenants, and will be complemented by the planned Chatswood to Sydenham Metro Rail expansion due in 2024.”
The redesign of end-of-trip facilities, HVAC system and office foyers have been based around sustainability and hygiene considerations. The project is targeting a 5-Star Green Star rating, a 5.0-Star NABERS Energy and 5.0-Star NABERS Water rating for the new office tower.
The original DA received council approval in March of 2019. A private fund managed by BlackRock settled on its $120 million purchase of a half stake of the complex earlier this year.
