Growthpoint Properties has announced the development of a 20,000sq m office building in Melbourne’s Botanicca Corporate Park.
Growthpoint Properties Australia, an ASX-listed REIT, has two existing buildings at the Botanicca park located on Swan Street, Richmond, leased to Country Road and David Jones, with a combined book value of $165.7 million.
Growthpoint managing director Tim Collyer said: “It’s become very popular as a creative technology hub. We’re confident the quality of the office space will be very well received by the market.”
The five-hectare Botanicca Corporate park was a joint venture development between R Corporation and Macquarie Bank commencing in 2014. A major pre-leasing deal was initially signed with GE Capital.
The business park is located five kilometres from Melbourne’s CBD. Other companies calling Botanicca home include Harris Scarfe, Mimco, Forever New and Witchery.
US hotel operator Marriott International is also planning to open a 168-room hotel at Botanicca and Garda Capital is building a five-level office building at 558A Swan Street.
Growthpoint Properties Australia is majority owned by South Africa’s Growthpoint Properties. It has a total property portfolio of over $3 billion.
Last week it announced an 83 per cent rise in statutory profit of $207.3 million for the first half over the corresponding period boosted by revaluations in the portfolio of office and industrial properties.
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The company profited from a big gain from the sale of a Woolworths distribution facility in Melbourne to property identity Harry Stamoulis for $90.75 million. The sale price was at a nearly 38 per cent premium to its book value.
At the company’s results briefing Collyer indicated he was confident on the outlook for the Melbourne market and bullish on rental growth in Sydney.
Growthpoint Properties received development approval from the City of Yarra last year to develop the building in the Botanicca Business Park.
Construction time is estimated at 18 months.