Red Cross commits to ex-Victoria Police HQ
The Australian Red Cross has signed a major office lease deal in Melbourne’s inner west, where it is familiar.
The not-for-profit has committed to 3588 square metres – a full floor – at the recently renovated 637 Flinders Street, Docklands.
Peakstone is the landlord; via Zone Q Investments, the local subsidiary of Chinese developer JiaHe JianAn Group, it paid Anton Capital $122 million in 2018.
The rental agreement comes two years since the ARC sold its Villiers St, North Melbourne, headquarters – a 6526 sqm holding – for $65m with a leaseback.
That buyer, a partnership comprising Sentinel and Dutch pension fund manager PGGM, is now expected to replace it with a significant build to rent project.
The blood bank held that property – the former NCR headquarters – since paying $7.1m in 2001.
Five years ago meanwhile, the ARC offloaded a Carlton office it used to occupy for $46m to the University of Melbourne (story continues below).
Accommodation upgrade
Peakstone, with manager, Artifex Property Group, undertook a c$80m extension and refurbishment of 637 Flinders St in 2021, after long-time occupier, Victoria Police, relocated to 311 Spencer Street, at the Docklands/CBD border.
With c25,112 sqm over 14 levels and an entrance on Siddeley St, the landlord launched a leasing campaign in 2022, managed by Cushman & Wakefield’s Ben Ward and Edward Maas with Colliers’ Michael Darvell and Zak Seccull.
Last year, Wesfarmers Health committed to 3500 sqm with plans to expand to 5000 sqm. More recently, home builder Nostra signed up (for 764 sqm) along with construction giant Icon (502 sqm).
Since entering the local market in 2013, Zone Q has created a c$650m portfolio also with four major apartment complexes – one in Sydney’s Milsons Point.
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