Department of Transport commits to offices for VicRoads in Ringwood, Mitcham

EXCLUSIVE

The Department of Transport is renting two new offices in and around Melbourne’s Ringwood.

Both premises will accommodate VicRoads staff relocating from that group’s Kew headquarters and the Tally Ho business park, in East Burwood.

The lease agreements follow a government restructure implemented last July which merged VicRoads and Public Transport Victoria into a division managed by DOT.

At the time of announcing this change last April, premier Daniel Andrews said no staff would lose their job but some would be relocated.

A year earlier the government confirmed some VicRoads functions undertaken in Melbourne would move to the GovHub building under construction in Ballarat.

VicRoads’ owner-occupied Kew base at 60 Denmark Street – a c2.5 hectare asset speculated to be worth well over $100 million – is in the medium term expected to be offloaded by the state government (former premier Dennis Napthine announced he would sell it in 2014 but a campaign never eventuated).

Near Kew Junction, the office replaced the former Kew train station, part of the Kew line which operated between 1887-1952. The pocket has seen apartment complexes of more 10 levels constructed in the past decade.

A car park for VicRoads staff was created on a paved section of the former track which connected Kew to Barker station, at nearby Barkers Road, Hawthorn (a property which from 1960 until recently, accommodated the California Hotel).

VicRoads’ next offices

Sources say the department has leased:

  • A 7450 square metre portion of Eastco, a 10-level, A-grade 13,000 sqm office and multi-level car park QIC is developing at 110 Maroondah Highway, a former row of shops abutting the Ringwood train station, opposite Eastland. VicRoads is negotiating to rent the balance of this building although this component hasn’t been finalised, and
  • at nearby 93A Heatherdale Road, Mitcham, an unbuilt commercial building which upon completion could be visible from Eastlink between Whitehorse and Canterbury roads. This complex will be occupied as a VicRoads licensing testing centre.

Colliers International’s Kevin Tutty, Rob Joyes and Travis Myerscough are marketing Eastco, which will offer large (c2150 sqm) floorplates, 360 degree views, ground floor retail and a three level car park.

CBRE Advisory and Transaction Services – Occupier, senior consultant, Patrick Brown, is managing VicRoads’ requirement.

All brokers declined to comment for this story as did the DOT.

The proposed 110 Maroondah Highway office (centre) will stand between Ringwood train station and Eastland.
Eastco will contain ground floor retail and six floors of office space.
Artist’s impression of Eastcos’entrance foyer.
Artist’s impression of an Eastco office layout (top and bottom).

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco