Hines – one of the world’s largest privately owned real estate investment and development firms – is paying $28.5 million for a half acre plot in Collingwood, in Melbourne’s inner north-east.
The properties, covering 36-52 Wellington Street, at the south-east corner of Northumberland Street, are set to be replaced with a “highly-sustainable” commercial development.
The 2120 square metre site can accommodate several buildings.
Hines director Simon Nasa said the company will utilise its T3 strategy – Timber, Transit and Technology – to create “a best-in-class project in a fast, clean, sustainable and aesthetically pleasing manner”.
“Jackson Clements Burrows Architects has been engaged to design a building, with architectural form to mediate between Collingwood’s significant industrial heritage and the wave of contemporary new developments,” Mr Nasa said.
“This project will cater to tenants who are seeking to improve the quality of their work/life balance and workplace experience, with an exceptional complement of amenities including common social areas; large tenant terraces; public third-space activation and premium end-of-trip facilities”.
Hines managing director David Warneford added “this project marks a significant milestone for our expansion into Australia and we are thrilled that the firm’s first Australian development will be with this T3 asset in Collingwood”.
Hines completed its prototype T3 project in Minneapolis in 2016. It has T3 developments underway in Atlanta, Chicago, Denver and Toronto.
The developer has a presence in 214 cities within 24 countries and US$121 billion of assets under management. Currently, it said, it has 128 developments underway globally. It has redeveloped or acquired 1350 properties totalling over 42 million square metres of space.
In Australia, it has acquired, owned, managed and sold more than $850 million worth of assets on behalf of various mandates.
“This is a perfectly symmetrical site that will benefit from the corner aspect and see great light penetration throughout,” Mr Ryan said. “It was sold fully leased to three tenants all of which have a relatively short-term lease expiry enabling access to the development potential within 18 months”.
Mr Ryan said the fundamentals of Collingwood as an office accommodation location were “second to none” with public transport linkages, proximity to the Melbourne CBD and an abundance of retail amenity.
“This is a vibrant suburb which hosts a range of warehouse conversions and now is fast becoming a corporate headquarter mecca with the likes of Swisse, AESOP and T2 calling Collingwood home,” Mr Ryan said.
“For example, we have seen AESOP commit to Grocon’s 54 Wellington Street project, with construction likely to be completed in 2020. CBUS is nearing completion of its multi-level residential project, Holme, and Pace of Collingwood has recently been completed”.
Pace is developing another building in the suburb at 51 Langridge Street.
“In the near future, Gurner will launch 1-57 Wellington Street, Collingwood, which is a mixed-use project with 219 dwellings and a large amount of commercial office and retail. Through these many projects the streetscape and evolution of Collingwood will continue to prosper.”