CONSTRUCTION has kicked off at Charter Hall’s $460 million office building in Melbourne’s Richmond, where Australia Post will become one of the first multi-billion dollar enterprises to exit Melbourne’s CBD in favour of the fringe and suburbs in the wake of the pandemic.
The 12 storey, 32,000 sqm A-grade commercial development at 480 Swan Street will boast 3,000 sqm floorplates and become Australia Post’s national support centre.
Charter Hall and Victorian Funds Management Corporation (VFMC) secured a 10-year pre-lease agreement with Australia Post in September last year, as the CBD sat empty during Melbourne’s extended delta lockdown.
Constructed by Built, 480 Swan Street will also include 1,000 sqm of new retail and services as well as pedestrian pathways between transportation, office, and lifestyle amenities, end-of-trip facilities and upgrades to the surrounding streetscapes.
The development will be carbon neutral throughout construction and will provide more than 2,000 construction jobs.
Completion is due in 2024.
“We are continuing to see a flight-to-quality across our office market nationwide, with our valued tenant customers seeking premium workplaces where their teams can be inspired by open and collaborative spaces, sustainability credentials and premium amenity,” Charter Hall Office CEO, Carmel Hourigan, said.
The fully electric and carbon-neutral building is targeting a 6 Star Greenstar Rating, 5-star NABERS Energy Rating and WELL Platinum Rating, and became subject to Australia’s first green development loan in an agreement with Commonwealth Bank last year.
“Works underway so soon on this major project demonstrates the success of our accelerated approvals strategy to drive investment, create jobs and keep construction moving to strengthen our continued economic recovery,” Treasurer of Victoria, Tim Pallas said.
“We are not only supporting the Victorian construction industry and its workers, but also boosting local economies like Richmond, which will reap the benefits from thousands of Australia Post employees’ spending power.”
Australia Post occupies more than 50 Charter Hall properties nationwide across office, retail and industrial and logistics assets.
Australia Post CEO and managing director, Paul Graham, said, “We are pleased to be working with Charter Hall to relocate Australia Post’s Melbourne office to Burnley in 2024, which presents us with an exciting blank canvas to accommodate our national support centre, and allows us to create an environment to connect and partner with our customers, community and the wider Australia Post network.”
