Melbourne office building to have ‘tenants-only’ hotel rooms

The moratorium on commercial property evictions and rent increases has been extended.
The moratorium on commercial property evictions and rent increases has been extended.

A Melbourne developer is planning “hotel-style” accommodation facilities within a South Melbourne office precinct, for the exclusive use of the office tenants and workers.

The Deague Group recently paid more than $24 million for a 4000sqm site at 81-109 Moray St, which lies alongside the Kings Business Park that the group already owns.

The group now plans to build a $150 million worth of office and mixed-use space valued on the site, adding 15,000sqm to the 33,500sqm of office buildings the business park currently comprises.

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But it is the building’s eye-catching extra perks to lure tenants that give a glimpse of the future of Australia workplaces.

“We are going to bring our experience in the hotel sector in what is a first for the Australian market, being a ‘wellness’ office building, providing tenants with reflection gardens, fresh oxygen being pumped into the state-of-the-art gymnasium, and a six-star end of trip facility,” Deague Group says in a statement.

“We are also exploring what we believe is a first in any office building, whereby we have a range of hotel-style accommodation facilities, which can be occupied by tenants of the building only.”

Deague Group CEO Will Deague says the unique additions are aimed at distinguishing the development from other new high-rise office buildings.

“The building will include a handful of hotel rooms for the use of tenants, such as for visitors or for tenants to stay in the city after an evening work function,” Deague says.

“We want to make it something a bit different to the standard offices going up all over town.”

Construction on the new building is expected to begin later this year. Deague Group says it won’t be seeking tenant pre-commitments, as it is confident in the demand for space at Kings Business Park.

The vendor of the Moray St site was a Monaco-based investor.