Cromwell Lodges Plans for Collins Street Skyscraper, Eyes Build-to-Rent

Fresh from its latest equity raising rounds, ASX-listed property fund Cromwell has lodged plans for a 55-storey skyscraper at 700 Collins Street in Melbourne’s Docklands precinct.

Cromwell said it is considering build-to-rent for the tower, with the development application proposing up to 265 one, two and three-bedroom residential units.

The $350 million redevelopment plans will greatly expand Cromwell’s 17-storey office tower, which it acquired for $133 million in 2004. The proposal includes 13,000sq m of A-grade office space, a four-storey podium car park and a 4.5-star 182-key hotel.

Cromwell is accelerating its billion-dollar value-add and acquisition pipeline, which it flagged during its equity raising presentation last month. The acquisitive group said it has more than $1 billion of identified opportunities currently in due diligence and advanced negotiations.

Cromwell head of property Bobby Binning said that the success of its $375 million institutional placement and the execution of a €225 million (A$365 million) syndicated facility has provided the group with funding certainty.

“There are a number of similar value-add opportunities being considered in the portfolio,” Binning said.

“[700 Collins Street] is another exciting value-add development opportunity and follows hot on the heels of the $75 million development approval received at Chatswood on Sydney’s North Shore.”

The approval for a $75 million integrated office and hotel development in Chatswood was received in April.

Related: Build to Rent Could Shake Up Real Estate but Won’t Take Off Without Major Tax Changes

The approval for a $75 million integrated office and hotel development in Chatswood was received in April.

The group is also eyeing $500 million of retail and office opportunities in Europe, and offloaded a $300 million half stake in North Sydney’s Northpoint tower earlier this month.

Other recent equity raising plays include fund giant Dexus raising a fully-underwritten $900 million to fund its mammoth 80 Collins Street buy and Mirvac launching a $750 million placement to help fund a $4 billion pipeline.

Cromwell has a direct property investment portfolio of $2.5 billion and total assets under management of $11.5 billion.