Pelligra plans two offices on Parliament station site
Pelligra is buying Spring Street’s prominent ex-Esanda headquarters with plans for two offices and a revamped forecourt abutting Parliament station’s southern entrance.
The L-shaped parcel, also including 19 Little Collins St – and air rights over the four level Anzac House (4-6 Collins St) – is costing the local developer and investor c$130 million.
Vendor, Proprium Capital Partners Australia, which formed five years ago when Goldman Sachs backed Anton Capital merged with Proprium Capital Partners, paid $112m in 2019.
At the time, that seller, Golden Age Group, had just shelved a 44 storey residential proposal.
Proprium obtained a permit for a 37 level Bates Smart tower containing 29,960 square metres of offices.
Pelligra director Ross Pelligra said its development outcome, to be delivered in stages, the first to begin immediately, includes:
- a retrofit of the vacant 16 storey, 10,299 sqm ex-Esanda office known as 85 Spring St, possibly with an extension. The ground floor would contain retail opening to the forecourt connected to the Parliament station steps, and
- when a pre-commitment is obtained, a rectangle shaped tower behind it, up to the permitted height.
Given control of 4 Collins St’s airspace, occupiers in either tower would have Treasury Gardens view security over the strata-titled Alcaston House.
The office quality is expected to be Prime grade – a mix between Premium and A – which in the city’s revered eastern core, can command net face rents over $650 per sqm (story continues below).
Another Spring Street project
Elsewhere in Spring St, Cbus is replacing the ex-Mercure Hotel at #13-23 with a 35 storey apartment complex.
Behind this – an address known as the 1 Spring St courtyard (but also 21 Flinders Ln) – the Besen and Roth families in April won permission for a 32 storey mixed-use tower containing 26,000 sqm of lettable office area over a five floor basement garage.
Diagonally adjacent to that holding, three skyscrapers are mooted for a block the state government listed in 2019 fronting Wellington Parade; Cbus and Mirvac are on the shortlist.
CBRE’s Kiran Pillai, Scott McGlone, Mark Coster and Stuart McCann with Knight Frank’s Paul Kempton and Trent Preece listed the 85 Spring St amalgamation earlier this year.
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