This article is from the Australian Property Journal archive
THE GPT Wholesale Office Fund has bought the Westpac office development at 150 Collins St from APN Property Group and Grocon.
GWOF will acquire a 100% interest in 150 Collins St, Melbourne on a ground lease of 99 years.
GWOF fund manager Martin Ritchie said the acquisition of 150 Collins St would provide the office fund with a premium quality building in Melbourne’s most desirable office location.
Located at the east end of Collins St, behind Scots’ Church, the proposed building comprises 20,000 sqm of office and retail space and is expected to have an end value of approximately $180 million.
150 Collins St is designed to achieve a 5 Star NABERS and 6 Star Green Star rating. Site works for the development have commenced already, with completion forecast in August 2014. GWOF will fund the completion of the project on a cost to complete basis.
The building will be home to Westpac, which has signed a binding pre-commitment for more than 70% of the building over 12 years. After the Westpac commitment, approximately 5,000 sqm of office space and 700 sqm of retail space will be available.
GWOF has secured a two year rent guarantee for the uncommitted space.
“GWOF has secured this opportunity in line with our strategy to acquire quality office properties in Australia’s key CBD markets,” Ritchie said.
The announcement follows GWOF’s divestment of non-core assets at 10-12 Mort St Canberra and the hotel component of the Brisbane Transit Centre communicated last week.
“The proceeds from the recent divestment of non-core assets will be channelled into 150 Collins St and 161 Castlereagh St in Sydney,” Ritchie concluded.
APN and Grocon will continue to deliver the project as joint project developers. Grocon will carry out the construction of the project.
“Over the years we’ve worked with the Scots Church Trust and more recently with Grocon as our development partner as well as extensively consulted with the community,” APN Property Group’s managing director David Blight said.
“We are excited to deliver this project which will integrate with the historical site and create a vibrant new public precinct,” Blight said.
Property Review
