Bill McNee pitches Toorak office tower at wealthy local families
Melbourne developer Bill McNee says a $600 million commercial and retail development proposed for Toorak Road will appeal to the suburb’s wealthy residents, saving them a commute to offices in the city.
“Most family offices are based in the CBD, even though the owners live in Toorak,” said Mr McNee, who runs private developer Vicland.
“We’ll be looking to appeal to these people as office tenants, allowing them to relocate closer to home,” he told The Australian Financial Review.
Vicland acquired the Village Way Arcade, a two-level building at 489-505 Toorak Road, for $80 million just six weeks ago in an off-market deal with its long-time owners, the Allen family.
The development application submitted to the City of Stonnington would replace the existing mall with a stepped eight-level glass building designed by Ellenberg Fraser featuring over 10,000 square metres of office space and over 3500 square metres of retail on the ground and first floors.
A laneway colonnade would connect Toorak Road to Jackson Street at the rear, where there would be a public plaza.
Vicland has already secured Coles as the supermarket tenant on the ground floor, while plans for the first floor are based around a food hall concept that Mr McNee said would take inspiration from the El Nacional in Barcelona, a restaurant featuring distinct areas offering different types of cuisine.
Mr McNee said he was in discussions with the City of Stonnington to incorporate a neighbouring council car park in the public plaza planned for the rear of the site.
“We saw a unique opportunity for an office project in Toorak Village,” he said.
“This development will completely revitalise the area, bringing in a workforce of several thousands which will support the existing retail.”
Cash reserves
He said he hoped to kick off construction soon after securing a permit, with the project to take about 18 months to complete and funded from Vicland’s cash reserves.
Asked if he might consider selling the site with a permit – as he did with an apartment site in Fishermans Bend in 2015 – Mr McNee said his intention “at this stage” was to complete the project.
The proposed tower is not far from where Vicland recently kicked off construction of a nine-storey speculative office tower at 11 William Street in South Yarra.
The former carpark abutting Chapel Street’s Jam Factory will include 6200 square metres of office space and retail on the ground.
Vicland is developing a mixed-use office and retail project on Toorak Road, South Yarra, and a $185 million residential and commercial tower in Brisbane’s Fortitude Valley.
The proposed development at Toorak Village has already received one objection since being lodged on August 16.
A local resident who lives in an apartment on Jackson Street behind the proposed tower wrote to say he was “deeply distressed to think he would have no light” in his apartment and “would not be able to sell” his apartment.
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