Mirvac to start on Docklands commercial development
Yarra’s Edge developer Mirvac has moved into the realm of Docklands commercial development.
The developer, which thus far has focused on residential towers along Yarra’s Edge, will start work on a new office building in Bourke St this month.
The building, at 699 Bourke St, is set to become AGL’s new Melbourne headquarters and will sit on an elevated platform above Southern Cross Station.
The gas and electricity company has agreed to an initial 10-year lease to occupy 15,000 sqm of the 19,000 sqm available.
According to Mirvac senior development manager Brett Howlett, early site works started in July, with construction due to start this month.
The unique location of the site requires an innovative construction program.
Cranes will be mounted on a protective gantry and will lift items from the median strip below on Wurundjeri Way.
The gantry will protect cars travelling along Wurundjeri way.
Mr Howlett said construction of the building was expected to take around 18 months.
The 6300 sqm platform that the building will sit on also has a planning permit for second building at 664 Collins St.
Mr Howlett said Mirvac was currently “sourcing future opportunities” for the site and that work on this development would be subject to securing an anchor tenant.
He said the building was in the market for a tenant of up to 30,000 sqm.
The platform site was originally purchased for $30 million by Mirvac in 2007 in a joint venture with Australian Super, with plans to complete 664 Collins St before mid-2010.
Mr Howlett said the development had been delayed by the global financial crisis, which had meant most corporations weren’t looking for new offices.
He said Australian Super no longer had an interest in the project.
Mirvac’s move into commercial development in Docklands will mean more competition amongst local developers.
Walker Corporation is still working to secure anchor tenants for three of the five towers in its Collins Square development.
At the other end of Docklands, Digital Harbour Holdings is yet to announce an anchor tenant for its 23-storey office tower on LaTrobe St, which was approved by Planning Minister Matthew Guy in June.