AXA Investment Managers is buying a $100 million unbuilt office within Caydon’s Malt District development, in the riverside Richmond pocket of Cremorne.
As part of the transaction, AXA will pay $32.5 million for the land at 17-21 Harcourt Parade, which was for years the warehouse for Beaver Plastics.
This site is making way for a nine-level, 9600 square metre commercial building (pictured, middle, in artist’s impression, top), about 8800 sqm of which was pre-committed by business software giant MYOB earlier this year.
The office, and two more buildings, rising 12 and 15 storeys, are part of the first stage of Caydon’s Malt District, construction of which is starting this month.
Caydon owned 17-21 Harcourt Parade prior to buying the neighbouring and higher profile “Nylex” site in 2014.
Malt District will incorporate the two holdings, which is at the southern end of Punt Road, also the suburb border with South Yarra.
The second development stage of Malt District will include two residential buildings, a rooftop bar and restaurant under the Nylex clock, a hotel set into the high-profile VB silos, office and retail. A microbrewery, gastro pub and café, also part of stage two, will be set into heritage buildings.
Colliers International’s Trent Preece and Rob Joyes negotiated the off-market sale to AXA (the agency also co-ordinated the MYOB pre-commitment and is responsible for leasing other commercial components of the Malt District)
“The proposed [MYOB] building will form part of the exciting Malt District which will transform the iconic Nylex site into a vibrant mixed-use precinct integrating modern offices and apartments with refurbished heritage buildings, silos and generous public space,” Mr Preece said.
Cremorne is one of the hottest office markets in the country, with major technology and creative tenants attracted by the high level of surrounding amenity, ease of access and public transport links, he added.
“The precinct has experienced double digit rental growth per annum over the past two years and has one of the tightest vacancy rates of any major Australian office market,” Mr Preece said. “Offerings of this scale and quality are rarely seen outside of the Melbourne CBD. The offering attracted a strong level of interest from targeted domestic and offshore institutional investors attracted by the thriving location, strong lease covenant and long weighted average lease expiry.
AXA Investment Managers, the number one portfolio and asset manager in Europe, controls real estate valued at about $100 billion.
Caydon, directed by Joe Russo, has become of the largest developers in Melbourne having completed more than $1 billion worth of projects in recent years. Caydon’s portfolio also includes assets in the USA.
The deal for 17-21 Harcourt Parade comes 10 months after Icon Development Group sold another unbuilt Richmond office at 600 Church Street for $50 million.