Dexus’ 60 Collins Street office proposal wins council approval

The proposed building (left) will incorporate the historic 1880s Melville House at 52 Collins Street.

The City of Melbourne has granted Dexus approval to replace the Reserve Bank of Australia state headquarters, and a mid-rise commercial building next door, with a 26-level office.

The 52-60 Collins Street proposal will include 22,727 square metres of Premium graded (the highest quality) stock.

It will also contain 757 sqm of lower level retail space, 36 car parks and 212 bicycle spaces.

All up the Bates Smart designed building’s gross lettable area, including common spaces, is 35,730 sqm,

Dexus said its proposed development will deliver “vital premium office accommodation” and include quality amenity.

“It is an important precinct for the city and we will continue to work constructively with the council and state government in seeking final approval for this project”.

Last May, Dexus paid $1.476 billion for a collection of commercial assets at the north west corner of Collins and Exhibition streets opposite the RBA building and adjacent to Collins Place.

That portfolio includes two offices: the 52-level Nauru House and a 39-storey complex under construction next door.

Upper level occupants within both those towers will enjoy view security over the new 60 Collins Street, which will rise just 20 metres taller than the RBA building it replaces.

Development won’t add much stock to prime corner

The proposed 60 Collins Street will add just over 5000 sqm of office stock to the Melbourne CBD east end – one of the most expensive locations to rent commercial area.

Dexus paid the federal government $160 million for 60 Collins Street in September, 2018.

This 15-storey, 13,817 sqm office on a 1357 sqm parcel at the north east corner of Exhibition Street, classified C-grade by Council’s Heritage Places Inventory, once accommodated Sydney Nolan painting Eureka Stockade.

In an off-market deal conducted at the same time, the landlord spent $70 million for the adjoining 52 Collins Street, from private investors Marks Henderson.

Once occupied by Bank of Melbourne, this c600 sqm site contains an 11-level, 3428 sqm office, ANU House, which will be demolished.

At its front boundary, an 1880s three-level structure, Melville House (pictured, below), will be retained.

The proposal will include 757 sqm of retail space at the north east corner of Collins and Exhibition streets (left) and retain Melville House (right).
The 15-level Reserve Bank of Australia building at 60 Collins Street.

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Marc Pallisco

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

Marc Pallisco