Mirvac is paying $122 million for a Melbourne CBD office it plans to replace with something four times bigger.
The seven-level B-grade building containing 10,200 square metres of lettable area at 383 La Trobe Street is leased to the Australian Federal Police on a short term.
Mirvac intends to build a new A-grade office measuring approximately 40,000 sqm on the 2850 sqm block.
Mirvac’s Head of Office and Industrial, Campbell Hanan, said in this statement “the acquisition of 383 La Trobe Street presents us with a rare opportunity to secure a significant development asset in a well-located part of Melbourne CBD, while providing the group with secure income over the medium term”.
The deal means the end for a controversial residential redevelopment proposed by the vendor, Sterling Global, in 2016.
Sterling appointed architect Jean Nouvel to design a 70-level building containing 488 apartments and 196 hotel rooms. Approved by planning minister Richard Wynne without modification, this building would have towered over the historic former Royal Mint building next door.
Sterling’s proposed plot ratio of 29:1 – well over the 18:1 limit – was justified by Mr Wynne because the tower would have offered the city a public benefit (an arcade leading to a new laneway connecting the site to Queen Street, which would have featured art installations).