Quintessential invests into Geelong's post-pandemic appeal
Boutique property platform Quintessential Equity is pursuing a $130 million office development at Geelong, its fourth such project in Victoria’s second-largest city as the regional hub enjoys surging demand for corporate space.
That demand for office accommodation was well advanced before the onset of COVID-19, as state and federal government moved agencies into Geelong to stimulate the local economy to fill the gap left as major employers including Ford and Alcoa quit.
But what began as a decentralisation strategy has only accelerated during the pandemic, according to Quintessential’s executive chairman Shane Quinn, as more people working flexibly and seeking better lifestyles moved into the area.
“Geelong’s prosperity feeds off the back of the post-COVID-19 world,” he told The Australian Financial Review. “Businesses are truly investigating the amount of staff who are located between Geelong and the Bellarine Peninsula. And they want alternative [office] accommodation to service to the talent that is in that precinct.”
Designed by Cox Architecture, the 11,000 square metre, 11-level office project at 20 Gheringhap Street has been given development approval. It will form part of an urban regeneration initiative driven by the City of Greater Geelong that is transforming a 6670 square metre CBD site. The completed precinct will involve an investment of more than $250 million between government and the private sector.
For Quintessential, the latest project takes its investment over the past six years in Geelong past $500 million, including the development of a $200 million civic precinct and the new headquarters for WorkSafe. Mr Quinn hopes to invest a similar amount over the next six years.
“We’re only halfway through our total commitment,” he said.
The Gheringhap Street project will get under way once roughly 45 per cent of its space anchored with pre-commitments. Colliers Ed Knowles has been appointed to broker lease agreements for the A-grade space.
Mr Quinn said the extraordinary population growth in and around Geelong was bringing with it a new generation of talent that government and business could tap into.
“We believe in the depth of the market there. There is literally no vacancy in the A-grade stock there,” he said.
“It is Victoria’s second city. We said the second city and its price point is too attractive not for tenants to take it seriously. And that’s what’s happened. We’ve filled all our buildings with government and blue-chip tenants and we know that there is more demand coming.
“We know there is going to be a fight for talent which we are seeing in Geelong and buildings like this will help attract and retain the best talent for the business that are houses in it.”
The Gheringhap Street project also involves 2600sq m of public realm: open green spaces, cafes, restaurants and retail. The development is aiming for a 6-star NABERS base building energy rating and will include rainwater recycling, solar panels, and electric car charging stations.
