GPT Group will build two office towers in Flinders Lane with a $500 million end value after receiving development consent from the department of planning.
The Bates Smart-designed office development comprises a 15-level north tower and 39-level south tower, built upon a six-level podium.
The end design will create 29,000sq m of office space and 900sq m of retail space extending through to 32 Flinders Street, Melbourne.
The towers will have retail spaces at each street interface, with a new internal laneway connecting Flinders Street and Flinders Lane.
GPT Wholesale Office Fund purchased the site in 2018 for $87.1 million, which connects to the fund’s co-owned property on 8 Exhibition Street.
The newly-approved permit for an office development replaces a residential scheme originally planned for the site by then-owner Dexus, which was approved in 2016.
Construction on project is expected to commence in 2021 with works due for completion in 2024.
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GPT head of office and logistics Matthew Faddy said they hope to appeal to a wide range of businesses looking to have their own floor of distinctive premium grade space.
“As businesses adapt to changing work environments, there will be a greater focus on occupying premium office space,” Faddy said.
“Employers are seeking work environments that facilitate employees coming together to collaborate and foster relationships.”
GPT's plans also include basement parking for 88 cars and 274 bikes, a wellness centre, dedicated co-working spaces and terrace gardens on levels 4, 6 and 39.
The announcement closely follows the launch of the group’s leasing campaign at its Queen & Collins redevelopment, on track for completion in the first half of 2021.
The project involves the redevelopment of the 34-storey former headquarters of ANZ and the upgrade of two heritage buildings: 90 Queen Street, the Safe Deposit Building and 380 Collins Street which was the former Melbourne Stock Exchange Building.
The three buildings will be integrated into one precinct, blended via a series of semi open-air lanes, courtyards and intimate public squares, all accessible as part of a new retail and dining precinct.