Charter Hall is accelerating the construction of 555 Collins Street to meet a “key spike” in the expiry of commercial leases in Melbourne’s CBD.
The developer says it expects the demand for about 700,000sq m of leased space to peak in 2022 and is taking the “proactive approach” by commencing demolition early.
“It puts us in a position to deliver within this window of expiries,” Charter Hall development director Simon Stockfeld said.
The $13 million demolition contract has been awarded to contractor Delta Group.
The property fund manager tapped US firm Gensler to design the 35-storey office tower at 555 Collins, submitting a development application for the site in mid-April.
The first phase of the project will deliver 45,000sq m of technology-enabled office space to Melbourne’s financial district.
Charter Hall acquired 555 Collins Street for $140 million in October from Fragrance Group, creating a 4,620sq m strategic land holding in the western core of Melbourne’s CBD.
Charter Hall’s prime office fund owns neighbouring 55 King Street.
“The existing 555 Collins Street building is vacant, allowing us to hit the accelerator to meet completion deadlines,” Stockfeld said.
The Cox Architecture and Gensler-led design will “activate” the ground plane by adding public connections between Collins Street, King Street and Flinders Lane and a retail hub.
The demolition contractor Delta is already onsite, setting up perimeter gantries and erecting a tower crane. Completion is slated for mid-2022.
The 35-storey building is targeting 6 Star Green Star, 5 Star Nabers Energy and Platinum Well certification.
Charter Hall has appointed JLL and Colliers as leasing agents.