Lendlease buys $250m Melbourne Quarter tower
Artist's impression of One Melbourne Quarter, the first commercial tower at Lendlease's development at Docklands.

Lendlease buys $250m Melbourne Quarter tower

Lendlease’s investment arm, the Australian Prime Property Fund platform, is buying the first $250 million commercial tower being developed at the company’s Melbourne Quarter project.

Lendlease will move its Victorian headquarters into the 13-level office tower to be known as One Melbourne Quarter. The 26,400-square-metre tower fronts the Collins Street extension into Docklands.

Seven commercial and residential towers are planned for the $2 billion urban renewal project in the Batman’s Hill precinct.

“The sale of this building brings the vision of Melbourne Quarter to life and will drive increased momentum for the project,” said Lendlease’s chief executive officer for property, Kylie Rampa.

“As we did with our global head office move to Barangaroo in Sydney this year, we will be consolidating our Melbourne offices to bring our Victorian people together at One Melbourne Quarter in 2018.”

Lendlease will occupy four floors of building one on a 12-year lease. Floorplates in the building are about 2000 square metres. Design and engineering firm Arup has already been secured as an anchor tenant in the tower. The engineers will take three floors on an 11-year lease.

Lendlease’s investment arm will acquire the asset in a fund-through arrangement with its APPF Commercial fund.

The latest deal follows the fund’s recent acquisition of Darling Square in Sydney and investment in International Towers One, Two and Three at Barangaroo.

One Melbourne Quarter is designed by Melbourne architects Denton Corker Marshall. It will aim for a 6-Star Green Star Design and As Built rating, and a 5-star NABERS energy rating.

Nearby on the Melbourne Quarter project, plans have been lodged for the largest commercial building, a $550-million, 27-level tower, almost opposite Southern Cross station.

A skypark will link the office towers at Melbourne Quarter. Image: Supplied A skypark will link the office towers at Melbourne Quarter. Image: Supplied

A skypark will link One Melbourne Quarter and the larger tower, comprising about 55,000 square metres of office space. A large platform will be built beside Collins Street, straddling Wurundjeri Way, one of the main thoroughfares in Docklands. Planning approval has been granted for almost $1 billion of new apartments – close to 1690 units – across three towers at Melbourne Quarter.

Lendlease is selling its current home in Docklands, a $70 million ultra-green, seven-storey tower, known as The Gauge.

While Lendlease has a buyer undertaking due diligence on that tower, it is also looking for an investor in a new $450 million tower it is building to house ANZ Bank, just next to the bank’s existing Docklands headquarters.

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