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Rep Power: 2  |  UC: Northbank Place - (3 towers x 15st)
Developer: Far East Consortium
Architect: Ken Sowerby/Peddle Thorp Quote:
The article:
BUSINESS
Hooked on riverbank
Peter Taylor
21 November 2006
Herald-Sun
A MYSTERY fund has snapped up the office tower to be built on plum riverside land at the former CBD fish market site.
And plans for a second office tower on the Northbank Place site have been scrapped in favour of another residential building, the developer has revealed.
Far East Consortium has sold the office tower -- one of three buildings to go up on the 6140sq m site -- for more than $50 million.
Far East director Craig Williams said the strata office tower, to be built at the eastern end of the site, was 30 per cent leased and had been sold on an "earn-out agreement", for a base sum with increases linked to the extent of leasing.
All 196 apartments planned for the middle tower had sold, Mr Williams said, prompting the developer to change the western tower from strata office to residential.
Forty five per cent of the 185 apartments planned for that tower have sold too.
"The apartment market was honestly stronger than I thought and I was always a bit nervous about strata offices," Mr Williams said.
Far East had been "knocked over" by the strength of demand for apartments selling for about $400,000 facing south over the Yarra River, Mr Williams said.
"Really, when you step back and have a look at it, it's a pretty unique site," he said.
The developer now expects to be on site late in January with the project due by the last quarter of 2008.
The office tower will have about 10,000sq m of office space and about 50 shops are planned on the ground level, some lining two laneways between the three towers.
Some of the retail will be in a further 6320sq m space -- beneath the rail viaducts -- to be developed on a long-term leasehold basis from Melbourne City Council.
No retail space had been let out yet, Mr Williams said.
"It's a bit early to go out," he said.
"Retailers love to see cranes and action and the built form."
The success of residential projects in the Docklands had contributed to the popularity of apartments at Northbank Place, Mr Williams said.
"The city is moving like a glacier southeast. It's being pulled by the Docklands and Southbank," he said.
"Very often the small punter picks it before the bigger players."
The development plans have evolved significantly since the project was first mooted, when it was expected to consist of one building of apartments above ground-floor retail.
Last year Far East Consortium and then development partner Oceanis revised the plans to include office space, but just one building was still expected on the site.
Fairfax newspaper The Age was rumoured as a possible tenant for the campus-style building.
Early this year, the developers announced the building would be carved in three, isolating the office and residential components, with Downie St and Katherine Place to be extended southwards across Flinders St.
The sale this year of the Oceanis group to MFS had not impacted on the development, Mr Williams said.
"In fact, MFS have been a great partner and very proactive."
MFS paid about $150 million in February for Oceanis, best known for its global portfolio of aquariums including Melbourne's riverside CBD tourist drawcard.
| Quote:
BUSINESS
Griffin poised to swoop
PETER TAYLOR
28 November 2006
Herald-Sun
GRIFFIN Capital has emerged as a key player in the surprise sale of the Northbank Place office tower, sources say.
And architectural firm Peddle Thorp, which has designed the riverside tower, has confirmed it will be a major tenant, taking as much as 2000sq m.
The developments come after BusinessDaily revealed last week Far East Consortium and partner MFS had sold the 10,000sq m office tower in a deal that will rake in more than $50 million.
The strata office complex is one of three towers Far East Consortium will build on the former fish market site, now a car park, beside the Yarra River at the western end of Flinders St.
An industry source said Griffin Capital, a small Sydney-based institution, had represented the mystery fund that bought the office complex.
Griffin had also been scoping other Melbourne properties, the source said.
"They have been out trying to buy other things as well," he said.
Griffin director David Allen would not say if his company was involved in the Northbank Place transaction.
But he hosed down reports of the sale, saying he was aware of no deal to sell the unbuilt offices.
"No transaction has transpired in any way, shape or form," Mr Allen said.
Other sources close to the reported sale echoed Mr Allen's comments, saying a deal was several weeks off.
But MFS issued an announcement to the Australian Stock Exchange last week, after BusinessDaily's report, confirming the sale on an "earn-out agreement" for more than $50 million with increases linked to the level of leasing.
Far East director Craig Williams last week told BusinessDaily the office tower, to be built on the eastern end of the 6140sq m site, was 30 per cent leased.
Peddle Thorp Melbourne director Carlo Corallo confirmed yesterday the firm would take "1500 to 2000sq m", or up to 20 per cent.
It will have the lowest office levels of the building, immediately above the street-level retail.
Peddle Thorp will consolidate its Melbourne operations from its head office at 140 William St, where it has 1200sq m, and a small office in Little Collins St.
The leasing deal at Northbank was "completely independent" of Peddle Thorp's contract to design the building, Mr Corallo said.
"We had been looking at other options," he said.
"We will have been here (in William St) now for probably eight years in total".
The move to Flinders St would give the firm more exposure, he added.
"From our point of view, we believe it's got great amenity and it's a fantastic location right on the river.
"The floorplates are good, the orientation of the building is excellent and . . . it's a building which includes a lot of environmental control elements".
Far East Consortium expects to start work at the Northbank Place site in January.
The other two towers will house about 380 apartments, with about 50 shops planned for the project, many on a further 6320sq m beneath the rail viaducts.
| Eastern Tower: 12st/40m
Central Tower: 13st/45m
Western Tower: 15st/50m  Quote:
Originally Posted by A r c h i  | |
20th February 2008, 08:10
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