Mirvac revives Melbourne with launch of Collins Street office development

Nick Lenaghan and Larry Schlesinger

Mirvac has launched its development of a $750 million-plus premium office tower on Melbourne’s Collins Street that will incorporate the stunning facade of a “marvellous Melbourne” era building. With Deloitte signed on as its anchor tenant for 22,000 square metres in the 58,000 square-metre building, the developer is on track to complete the project by the middle of 2020. Chief executive Susan Lloyd-Hurwitz said the 40-storey tower rising behind the historic Olderfleet buildings on Collins Street will be one of Mirvac’s largest commercial developments in Australia.

Mirvac is aiming high. The Grimshaw Architects-designed project includes a terrace wrapping around the rear and side of the building, allowing sky-high views over Melbourne.

Mirvac’s chief executive Susan Lloyd-Hurwitz with Melbourne Lord Mayor Robert Doyle at the Olderfleet launch. The project is targeting 5-star Green Star sustainability rating and an international platinum WELL certification. "We understand the importance of creating workplaces that are good for people, that inspire and grow with an organisation and its workforce. Olderfleet will achieve this,” Ms Lloyd-Hurwitz said at a launch event on Monday.

The new building will host one of the largest lobbies in Melbourne with a 30-metre-high glass atrium, allowing visitors to look back up at the restored Olderfleet buildings. The Olderfleet Buildings are recognised as one of the best-preserved examples of the “marvellous Melbourne” era of the 1890s. A modern office tower and car park at their rear have now been demolished. The new project will be coming into a market where commercial values are already nearing the peak.

“Having buildings like Olderfleet, which are going to be young, modern, low-capex assets, is going be the driver of outperformance and that is where we are taking the portfolio,” Ms Lloyd-Hurwitz told The Australian Financial Review.

As one of Melbourne’s few premium-rated buildings, and one of its most recently developed, the new project will also fare well in the battle for tenants, said Mirvac’s general manager for commercial development, Simon Healy.

“The next two years is going to be pretty buoyant in the Melbourne market. We have got a very good window over the next two years to do deals. We are very unique with what we are offering to the market.”