East Melbourne office complex seeking big buyer
Chinese-backed commercial developer Golden Age may tap the market to find an end purchase partner for a stake in an as yet unbuilt Melbourne office complex.
Golden Age and local player Time & Place are developing the $300 million office project in East Melbourne.
They are seeking to lease it up via Colliers International on the back of the dramatic surge in city’s fringe office market.
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The Australian has learned that Golden Age may consider taking its interest in the project to market before it even locks down a pre-committed tenant, with a host of aggressive potential buyers tipped to be ready to chase the interest in the complex.
Time & Place will deliver the complex and says it will retain its interest in the property, but sources say that the entire complex will be keenly sought should it become available in future as fund-through deals have grown in popularity.
JLL’s Nick Rathgeber and Leigh Melbourne are understood to be advising on capital structures but declined to comment.
The pair won planning approval for the joint venture project, called Victoria Place in East Melbourne, in March.
Located at 200 Victoria Parade, it has been designed by architect FJMT and will comprise about 26,000sqm of net lettable office space.
The project also includes world-class end-of-trip facilities, a sky terrace, expansive city views and a collection of retail, cafe and associated amenities.
Once completed, the office will provide a focus on wellness, targeting a 5-star Green Star office design, a 4.5-star NABERS and 4.5-star WELL rating.
There has been a run of sales in the city fringe markets of Collingwood and Cremorne, as well as on St Kilda Road, where hefty prices have been achieved.
Time & Place Property was set up by developer Tim Price in early 2015. In three years, the ambitious development team has grown to run more than $3.5 billion worth in projects.
Golden Age, founded by Jeff Xu in 2006, is a nationally recognised developer.
The company has a portfolio of commercial and residential assets, and developments worth about $4.2bn, with another $1.5bn in the pipeline.
This article originally appeared on www.theaustralian.com.au/property.
