NEWS
First Major On-market Opportunity in Docklands
07 May 2008
The strength of Melbourne's vibrant Docklands is set to be tested with the precinct's first major offering of a completed and fully leased office building.
The office building, 370 Docklands Drive, is being sold by national developer Austcorp Group Limited together with its Melbourne-based partner YarraCity through an expressions of interest campaign being run by exclusive selling agents Savills. The seven-level A-grade commercial building, valued at around $48 million, has approximately 7100 square metres of office space that was recently leased to leading private education provider Carrick Institute of Education.
Carrick in March this year committed to a 10-year lease with a further 10 year option. The lease generates a net passing income of approximately $2.9 million per annum. The building reached practical completion on April 30.
Austcorp State Manager - Victoria Greig Donnelly said 370 Docklands Drive was the first major office building in Docklands to be undertaken without pre-commitment.
"We started construction without any pre-commitments with the full confidence that its design and quality finish would attract a top grade tenant," Mr Donnelly said.
"Designed to cater for businesses that preferred to house their activities within a single building with large floorplates, 370 Docklands Drive has a lasting appeal," he said.
Designed by award-winning firm Cox Architects, 370 Docklands Drive offers virtually column-free 1600 square metre floorplates, 140 secure car spaces and ground floor office and café accommodation.
Adding to the building's future appeal is its high environmental sustainability rating, according to Mr Donnelly.
"370 Docklands Drive was the first in Green Building Council of Australia's (GBCA) history to have achieved a 5 Star Green Star ‘as-designed' rating after only one round of assessment," he said.
"It is one of only a small number of Melbourne office buildings with such a high level of accreditation. While we had the opportunity to pursue the current industry standard of a 4-4.5-Star Green Star rating, we had the foresight to strive for a 5-Star Green Star rating which we believe will become the new industry benchmark."
Mr Donnelly said 370 Docklands Drive's use of conventional technology and a cohesive approach to environmentally sustainable design by all stakeholders as the method for achieving the high environmental sustainability rating made the accreditation all the more worthy.
Situated prominently on the corner of Docklands Drive and Footscray Road with waterfront restaurants, bars, cafes and shops at the adjoining NewQuay and Waterfront City developments, 370 Dockland Drive's tenants will enjoy a high profile.
"370 Docklands Drive is the gateway building to the Docklands-Waterfront City precinct. This is an outstanding opportunity for investors to secure an asset that allows tenants to create an identity with a branded building with naming rights and signage," Mr Donnelly said.
"Investors have the opportunity to purchase a newly constructed building with a full occupancy to a top-grade tenant committed for the next 10 years," he said.
"These sound fundamentals are underpinned by those of the Docklands precinct, which has the one of the lowest vacancy rates of any office market in the Melbourne metropolitan area."
Savills selling agent Mathew Kent said the expressions of interest campaign was expected to attract a significant response.
"Given the limited availability of investments in the area, especially in the expected price range of 370 Docklands Drive, we believe this brand new building will be very hard to replace," Mr Kent said.
"With land prices forecast to rise and as construction costs continue to climb, investment in this building is future proof."
Expressions of interest close on June 12.
Read more about Austcorp's 370 Docklands.
Go to the 370 Docklands website at www.370.com.au.
