RF CorVal Swoops On Collingwood Tower

An 8,600sq m office development in Collingwood has changed hands, signalling a major off-market play, with Australian funds manager RF CorVal picking up the unfinished project for $75.5 million from Aus Finance Group.

The sale, of 71 Gipps Street in Melbourne's emerging office hub was negotiated directly between the parties, and follows a large leasing pre-commitment to IWG for 40 per cent of the building.

Aus Finance Group and Alpha14 Property will oversee the delivery of the Hayball Architects-designed project, known as GCQ, with RF CorVal to fund, manage and own the Collingwood asset.

CorVal, backed by former Multiplex chief executive Andrew Roberts, says it plans to own the Collingwood property over the medium to long term once completed.

“RF CorVal was attracted to the Collingwood office market as it provides tenants with significant amenity in close proximity to the north-eastern end of the Melbourne CBD,” CorVal head of transactions Oliver Picone said.

“We expect the precinct to continue to evolve and develop, becoming a more established office market in time, and see some similarities to the early stages of CBD fringe markets like Surry Hills in Sydney that has performed very strongly in recent times.”

Demolition is now completed and a builder has commenced on the Collingwood site.

“The remaining tower floors are circa 500sq m and we anticipate good demand from small-to-medium sized companies to lease this space,” Picone said.

GCQ will include an onsite café, retail and mixed-use spaces, including a rooftop terrace and ground floor communal space.

Last month, Melbourne developer Peregrine Projects received approval for its $95 million commercial precinct “Langridge Lanes” in Collingwood.

Peregrine's Collingwood development, designed by Jackson Clement Burrows, will comprise a 6,000sq m nine-level building at 88 Langridge Street.

Colliers International’s Michael Darvell and Matt Cosgrave are appointed as leasing agents on the GCQ building.

Sydney based RF CorVal has acquired more than $2.3 billion of property since inception.

The GCQ development is expected to be finished by the second quarter of 2021.