Melbourne-based developer Gurner has submitted plans for his first commercial project, a $120 million mid-rise office building in North Fitzroy.
In a move to diversify its holdings, the developer has submitted plans for its first mixed-use commercial site at Fitzroy North. This will be Gurner's first Australian project with no residential component.
Gurner founder Tim Gurner says the project will include a 1,687 square metre supermarket, 110 serviced apartments and more than 6,000 square metres of premium office space.
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“We will look first to lock in a supermarket and hotel tenant before embarking on a leasing campaign for the office space in the coming months,” he said.
The existing buildings on the 3,300 square metre site are unoccupied. The industrial site, located at 81-89 Queens Parade, was once home to an old warehouse building.
The site is located just 100 metres down the road from Gurner’s controversial $350 million apartment development at 26-56 Queens Parade. The original proposal, for a 16-storey, twin-building development, was drastically downsized after Victorian Planning Minister Richard Wynne stepped in and imposed a 10-storey height limit on the site.
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Gurner describes the office building as “a long-term play” with a focus on holding the asset for the long run. He says the decision for an office development was about diversifying his $2.7 billion portfolio "given the low vacancy rates and strength in the commercial market.”
“The local population in the City of Yarra is forecast to grow by 30 per cent in the next 20 years, so we see a unique opportunity to cater for the business and commercial needs of the area,” he said.
With 1300 apartments settled last year, Gurner says his company is actively looking for new acquisition opportunities in both residential and commercial sites.
A goal for demolition to begin by the end of 2018 has been set with construction to follow in early 2019.