Hines to launch Melbourne office skyscraper
In one of the strongest pointers to the direction of central business districts, US group Hines has swooped on a development site in the heart of Melbourne’s CBD and is planning a $1 billion-plus office scheme.
The site was bought from Chinese-backed developer Landream which had planned a 54-storey luxury apartment and hotel tower on the blue ribbon Collins Street site that was designed by the late Zaha Hadid.
The move by Hines, which will now seek permission for an office skyscraper, shows capital is backing the recovery of office towers and also the difficulty of getting some luxury schemes with a hotel component off the group.
The move by the US group means the 600 Collins Street site will no longer house a luxury Mandarin Oriental hotel but Landream has exited profitably as the site sold for about $200m.
Hines says the property is one of Melbourne CBD’s last remaining prime development sites and it would seek to amend the existing mixed-use permit to deliver a 60,000sq m premium grade office tower in the CBD’s burgeoning western core, which it says is becoming the city’s premier corporate hub.
Hines director Simon Nasa, who led the Collins Street acquisition, said the move into development had been a deliberate transition for the firm’s business in Australia.
“Hines’ global track record over generations of real estate development provides us with unique experience on which to draw,” he said. “600 Collins Street will be a core, best-in-class Hines product, utilising forward-thinking design principles and globally informed construction methodologies to ensure the highest standard of quality and a top position amongst its competitive set.”
Hines managing director David Warneford said the acquisition reflects the firm’s global confidence in the long-term future of the office sector post-COVID.
“We have witnessed an unprecedented experiment in work-from-home as a result of the pandemic, which has sparked change in the way people will work in the future,” he said. “Businesses will demand office space that responds to their unique needs such as flexible ways of working; a strong focus on health and wellness; an atmosphere conducive to collaboration and continuity of corporate culture and seamless technology integration.”
Hines is also developing projects on Melbourne’s inner city fringe in Collingwood, where it is undertaking an 18,200sq m 15-storey heavy timber creative office building, and in Richmond, where it is doing a 5,000sq m ten storey boutique creative office in Richmond.
The 600 Collins Street site was acquired from Melbourne-based property development firm, Landream, in a deal brokered by Paul Kempton of Knight Frank acting for Hines.
Other companies have also been active in Melbourne office development plays.
Charter Hall’s flagship office fund agreed a pre-lease with leading global technology company Amazon as the anchor tenant customer for its new $750m 555 Collins Street”office development, which will now kick off construction.
The article originally appeared on www.theaustralian.com.au/property
