Mirvac’s marvellous mid-town move
>> The Mirvac Group is advancing plans for a $500 million redevelopment in the heart of the fast-emerging mid-town section of Collins Street. This week the listed developer and investor finalised a deal to acquire 477 Collins Street from Aviva Investors for a figure in the low $70 million range. The Olderfleet Buildings is one of the best-preserved examples of the “marvellous Melbourne” era of the 1890s. The property combines three heritage frontages on Collins Street, with a modern office tower and car park to the rear. Mirvac will now pursue plans for a 40-storey tower behind the historic front sections. A new tower is expected to offer 50,000 square metres of space, with an end value near $500 million. A side core-style development by Grimshaw Architects will enable Mirvac to deliver 1600 square-metre floorplates into the premium office market.
>> “What is now happening is the emergence of a precinct which is very well connected to both ends of Collins Street,” he said. Over that period, the CBD has developed a strong north-south axis, with the Collins Street mid-town area around William and Queen Streets playing a central role . “Because of these factors, if you look at the potential value of redeveloping in the mid-town, it has got a whole lot going for it.” Mirvac’s latest acquisition will be held on balance sheet, delivering a commercial return, as Mirvac hunts tenants eager for accommodation in a new generation tower. Other big players are also taking positions in the burgeoning mid-town. Lorenz Grollo is preparing for a major revamp to the Rialto Towers, next to the Olderfleet. Across the street, he is planning an ultra-slender tower project at the Makers Mark site. Nearby, another Grollo scion, Daniel Grollo is pursuing a $600 million joint venture at 555 Collins Street. Further along, Investa is funding a $460 million new office tower emerging from Collins Street, just before Spencer Street.