GPT Revising, Not Reviving Melbourne Central Plans

Fund manager General Property Trust says it is revising, not reviving, six-year-old plans for a central business district office building next to its Melbourne Central Tower, despite admitting agents have been promoting the building to tenants.

GPT office investment manager Luke Briscoe told Capital Gain that recent design changes to the proposed 12-level, 22,000-square-metre building at 300 Lonsdale Street were part of "key future pipeline" reviews done for its properties.

He dismissed speculation that GPT planned to sell the site, but admitted it would consider building an office, if it could snare a tenant to lease most of the space.

The building would be at Melbourne Central's Lonsdale Street entrance, near the enclosed pedestrian bridge connecting it to Myer. A permit has existed since 2002, but current retail leases prevent immediate development.

Jones Lang LaSalle leasing agents for the office building, Stuart Colquhoun and Kevin George, declined to comment.

This week, GPT announced it would sell retail and hotel assets and a US seniors real estate business in deals expected to reap about $4.4 billion. GPT described Melbourne Central as an exceptional earner in its $14 billion portfolio.

According to the Property Council of Australia, tenant take-up of office space in the first half of the year was 59,967sq m net, down 40% from the same period last year, which was one of the biggest years for CBD office leasing.

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