Surveillance Systems Captures Major Melbourne Office Deal
One of Melbourne’s bigger privately-owned office leasing deals outside of the CBD for 2021 has seen surveillance systems developer AVT Australia expand in North Melbourne, following its acquisition by NYSE-listed CACI International.
Fitzroys’ Agency Associate Stephen Land negotiated the 4-year lease at 141 Capel Street at a face rent of $701,040pa plus GST.
Refurbished ahead of the leasing campaign, the wholly self-contained, 3-level 1,582sqm building consists of offices over level 1 and level 2, and a ground floor car park with 25 single spaces.
It is only a 10-minute walk to Flagstaff train station and ample on-site street parking along Capel Street for customers and clients, and will be just a few minutes’ walk from the future Parkville train station.
AVT Australia was acquired last year by CACI International to deliver technology and capabilities in ISR (intelligence, surveillance & reconnaissance), security, and counter UAS (unmanned aircraft systems) solutions to its customers.
“As a result of its growth and acquisition, the company sought to expand their office footprint substantially. They already occupy an office warehouse of circa-500sqm within Capel Street that they will retain,” Land said.
Late in 2019, AVT Australia won a $5.2 million Defence Innovation Hub contract with the Federal Government to design and develop a system to improve the quality of images captured by drones.
Land said the a large number of tenants from a broad range of industries made enquiries, including biotech, pharmaceutical and medical research companies looking to have a presence within the city’s renowned biomedical precinct; various not-for-profit organisations who gravitate to these areas due to lower rental rates of comparable fringe suburbs and the CBD, as well as unions and other government bodies; and engineering and construction groups to be close to major infrastructure works.
“Often, larger tenants of 700sqm to 1,500sqm are looking at their moves up to 6 to 9 months out, so we were dealing with delayed commencement dates which can be tricky with landlords that are not institutional or as familiar with the market. However, in this case we were able to secure an imminent rent and commencement date,” Land said.
“The building offered prospective tenants a chance to relocate from the CBD with the option of a whole self-contained building that have become more sought-after during COVID given the greater health and logistical securities.
“While we have been seeing this trend, the demand for the north-west fringe has lagged that of the east and south east, including locations like Richmond and Cremorne.”
Land said lifestyle, amenity and accessibility considerations are more sought-after than ever with flexible working arrangements in vogue.
The building is just moments from Queen Victoria Market and the CBD, with the property offering impressive views of the city.
Makeover for Hotel Claremont
Hotel Claremont is likely to be Toorak Road, South Yarra’s next redevelopment project, with V-Leader expected to convert the heritage Italianate building into apartments, offices and retail.
V-Leader bought the property at 189 Toorak Road for $22 million deal from owner and previous operator, hotelier, Michael Renzella.
The 906sqm site has a permit in a place for a $50 million, 12-level mixed-use development with 57 apartments, 1,195sqm of office space, 4 shops and 30 parking spaces.
Last year, V-Leader group obtained planning approval for a 24,836sqm office and 288-room hotel for Lonsdale Court in the CBD, at the intersection of Lonsdale and King streets.
Hotel Claremont is next to South Yarra Square and a neighbouring row of 4 adjoining Tudor-style shops that local developer Oreana Property Group recently bought in separate transactions for more than $48 million combined.
Oreana plans to transform the 5-level South Yarra Square retail and office complex into a new luxury hotel and wellness centre. The Tudor buildings at 169-175 Toorak Road sit on a 613sqm site next to South Yarra train station, and are fully leased with short-term deals expiring early next year.
Elsewhere in South Yarra, Goldfields is developing a new 24-level office building at 627 Chapel Street, and the Jam Factory is set for a $1.4 billion redevelopment that will introduce a 170-room hotel, between 550 and 650 apartments and an office component.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2021 Fitzroys.