Lender and developer AUS Finance Group has sold an unbuilt A-grade office in Melbourne’s inner north Collingwood for $75.5 million.

RF CorVal, directed by former Multiplex chief executive officer Andrew Roberts, is acquiring GCQ at 71-93 Gipps Street following an off-market deal negotiated with the owner.

Set to rise 11 storeys, and with 8600 square metres of area, construction could start from last August when co-work accommodation provider, International Workplace Group’s Spaces pre-committed to 40 per cent on the lower podium floors.

AUS Finance Group acquired 71-93 Gipps Street – a former double storey warehouse – in 2016.

As part of the sale deal, it and Alpha 14 Property will oversee the delivery of the Hayball Architects designed project.

RF CorVal is responsible for leasing up the balance 5100 sqm of space (the incoming landlord has retained Colliers International’s Michael Darvell and Matt Cosgrave for this).

GCQ, which will also contain an onsite café, retail, rooftop terrace and ground floor communal space suitable for large meetings, group training, yoga and other activities, is scheduled to open by mid-2021.

Collingwood offers significant amenity: RF CorVal

RF CorVal head of transactions, Oliver Piccone, said the investor was attracted to the former working-class suburb as it provides office tenants “with significant amenity in close proximity to the north eastern end of the Melbourne CBD”

“We expect the precinct to continue to evolve and develop, becoming a more established office market in time”, the executive said, adding he sees “similarities to the early stages of CBD fringe markets like Surry Hills in Sydney that has performed very strongly in recent times”.

Mr Darvell added GCQ is close to transport links and an abundant of food and retail offerings along Smith and Gertrude streets.

“With Collingwood experiencing a rapidly increasing labour force, with a more youthful worker demographic and higher concentration of university students than Greater Melbourne, GCQ will allow provide an environment for businesses to attract, grow and retain the best quality team for long-term business success,’ the agent said.

Source: Marc Pallisco, Real Estate Source March 4 2020, https://www.realestatesource.com.au/aus-finance-group-sells-collingwood-office-for-75-5-million/