In an attempt to bolster its commercial property arm, private developer Salta Properties has partnered with listed property group Abacus to develop a $230 million office complex on Church Street in Melbourne’s Richmond.
The joint venture between the Tarascio family's Salta Properties and Abacus will commence mid-2019 and have forecast completion for 2021.
Salta has yet to gain development approval for the property which faces Church, Shamrock and Brighton streets and is in close proximity to East Richmond Railway Station.
Salta, best known for its Victoria Gardens project at the northern end of Richmond, will manage the project’s development, leasing and asset management, and will keep a half share in the end project with Abacus to also take half.
Richmond and Cremorne have fast become one of the country's most active office markets, with surging rents leading to a spike in development proposals and land values, leaving many to dub it Australia’s Silicon Valley.
Sart-ups, creative industry players and heavy technology companies like REA Group, MYOB, Tesla, and Uber have now established themselves in the city's fringe hotspot.
Melbourne developer Alfasi has plans under way for an 11-storey, 20,000sq m commercial building at 506-508 Church Street while Zig Inge Group is currently developing a new seven-storey 7,200sq m extension to its property at 57 Balmain Street.
Salta purchased the 459 Church Street location for $51 million in late 2017 and quickly set about plans to develop 25,000sq m of office space.
The site is currently made up of a mix of properties including an open air car park and a group of low-rise retail buildings.
Salta has enlisted Architectus to design the precinct which will comprise two premium office towers and include cafes and restaurants, a childcare centre, medical clinic, rooftop terraces and co-working spaces in a 6-star Green Star development.
“The approach to development and the values of the two organisations are closely aligned and are focused on delivering the best quality commercial offering to the budding Richmond and Cremorne precinct,” Salta Properties managing director Sam Tarascio said.
“The joint venture with Abacus will see the prominent, city fringe site come to life, offering prime office space within one of Melbourne’s most sought after locations.”
The developer is also in advanced planning for two build-to-rent residential projects including a five-building project in Richmond valued at $390 million and another in Docklands that will include 300 build-to-rent units and 200 hotel rooms.