Melbourne-based developer and investor GLG Group, controlled by the Langer family, has lodged plans for a 50,000sq m commercial development across a super-site in inner-city South Melbourne.
The 4650sq m commercial-zoned site at 80 Cecil Street has been earmarked for development since it was purchased by GLG Group for $41 million in early 2017.
Two kilometres from the Melbourne CBD and near the St Kilda Road office precinct, South Melbourne is a prestigious city-fringe location with access to arterial roads and key business areas.
The property, across the road from South Melbourne market, comprises 10 separate titles and 15 land parcels, bounded by Cecil, York, Northumberland and Market streets.
The site had been occupied by a range of single and double-storey commercial and industrial buildings which have since been demolished and cleared. The only remaining property on site is the heritage Southern Cross Hotel on the corner of Cecil and Market streets, which will be retained as part of the new development.
A revised development application has now been put forward to Port Phillip City Council by the group’s development arm, GLG Developments, which is headed by Daniel Langer, Simon Langer and Campbell Blennerhassett, formerly of CBRE and JLL.
The stepped development, which builds on a previous scheme submitted in 2018, has been designed by Hassell and will rise from its lowest point at York Street to its highest fronting Market Street.
The building could eventually be home to upwards of 2000 workers with 21,200sq m of A-grade office space across eight levels in 2100sq m floor plates.
Its design will enable future office occupants to have access to almost 3000sq m of outdoor terrace space which will step up across seven of the building’s levels with expansive views of the city and water.
The ground floor will feature a large “next generation” supermarket and four smaller retail tenancies, combining for 3800sq m of retail floor space.
The project will include four frontages and entrances on each of the four streets but will feature a large central lobby which will be integrated with the revamped heritage pub. The entire project will sit above four levels of basement car parking for 367 vehicles.
The development will be targeting a 5 Green Star Design and As-Built and 5 NABERS certification, with aspirations for 5.5 NABERS.
Helping it achieve these targets the building will use a high-performance sun shading system, an all electric energy plant, end-of-trip facilities and green roof strategies.
It will also be constructed with materials with relevant environmental product declaration certificates to reduce embodied carbon during construction.
In its planning statement, GLG Group and Hassell said the development’s red brick facade had been conceived as an extension of the historical context with more industrial textures and framed steel fenestration featuring “heavily around the site and its surrounding buildings”.
GLG Group has been in business for about 50 years, running a property development and investment platform.
The group currently has another 2400sq m site, which it snapped up in 2017, with 80 metres of frontage and more than a dozen shops running from 1167-1193 Highs Street in Armadale in the city’s inner south east.
At the time the parcel of retail properties was purchased as a strategic landholding and passive investment which eventually could have the potential for development over the long term.
GLG Group’s South Melbourne play taps into a growing trend for prime city fringe locations that are close to cafes, bars, restaurants, and other amenities, and within walking distance of transport routes and bike lanes.
As the post-pandemic recovery continues, many businesses are actively searching for and increasing demand for higher-grade flexible workspace solutions to adopt an agile and responsive workplace strategy in more affordable and accessible locations.
Nearby, boutique developer Fortis has also been bullish with three development sites in the suburb, at 313-317 Kingsway, 34 Eastern Road and 132 Moray Street where it is planning $150-million-plus of commercial projects.
Fortis is currently developing four other sites in South Melbourne. Among its current projects is a $38 million, nine-level office at 67-69 Palmerston Crescent and a six-level office building at 18-22 Thompson Street, with an expected end value of $27.5 million.
