DIVERSIFIED property developer Time & Place has appointed the construction partner for its commercial strata project, Lindrum.
Announced in April last year, The Lindrum is the redevelopment of the former Hotel Lindrum into a new offering to Melbourne’s strata office market, at 26-30 Flinders Street in the CBD.
The fjc studio-designed project will span 27-levels with floor plates spanning 300sqm to 600sqm, will retain the heritage original Griffiths Brothers Coffee Roasters façade and will have an end value in excess of $200 million.
“Time & Place identified a distinct need for premium strata office space in the ‘Paris-end’ of Melbourne’s CBD. Ina market where sophisticated, A-grade office developments are largely owned by institutional landlords, the Lindrum redevelopment presents an unprecedented ownership opportunity for discerning family offices and smaller corporates,” said Tim Price, founder and director at Time & Place.
“The project is in a premium location with unparalleled connectivity, encompassing architectural design excellence, sustainability, and superior amenities. The redevelopment will celebrate its coveted, front-row Flinders Street location, breathing new life into surrounding laneways and revitalising this corner of the city.”
Time & Place acquired the property back in 2o22 in a $50 million deal with developer and publisher Robert Magid.
“We are steadfast in our belief in the enduring value of strata office for investors and occupiers and this confidence is underpinned by our speculative build of the project prior to launching sales,” added Price.
Following a six-month tender process, Time & Place appointed Kapitol Group due to its best practice construction process utilising digital modelling and real-time data collection and analysis.
“Kapitol Group has been appointed for their high standards and thoughtful construction methodology, excellent craftsmanship, and proven ability to deliver incredibly high-calibre projects, particularly those with heritage restoration requirements,” added Price.
“By establishing a robust BIM environment throughout the design and construction phases, we believe Kapitol Group is well placed to manage integration of digital technologies at every step of the project lifecycle.
“Anything that enhances collaboration, accuracy, efficiency, and sustainability; while reducing costs, time, and risks, is hugely beneficial, especially for a project as unique as The Lindrum, and we are excited to commence construction and deliver this commercial asset to the most discerning construction and design standards,”
Kapitol Group is set to commence demolition on site in the coming weeks, with main construction expected to start in Q1 2025 and span a 24-month delivery timeframe.
“We are thrilled to be appointed as the construction partner for a project of this prominence, and with such cultural significance in Melbourne,” said David Caputo, co-founder and director of Kapital Group.
“It is an honour to contribute to a development that holds such importance for the community and the city’s heritage, and we are excited to bring our expertise to this meaningful endeavour.”
The Lindrum will include amenities including clubhouse style facilities, a rear entry point offering direct access to Flinders Lane and a ground floor events space.
While office values remain below peaks, activity hast been picking up in the market with $570 million worth of assets changing hands recently, with vendors accepting deep discounts to get deals across the line as a Parramatta office building once valued almost $190 million, sold for more than 60% below its peak valuation.
Following close behind Dexus and pension fund the CPP Investment Board’s sale of 5 Martin Place in the Sydney CBD and Mirvac’s divestment of its 40 Miller Street office building in North Sydney to Barings for $140 million and 367 Collins Street in Melbourne for $345 million, both at 20% discounts to peak book values, while Swiss fund AFIAA sold 628 Bourke Street for $115.8 million – some $70 million below what it paid seven years ago.
The Charter Hall Prime Office Fund is also expected to sell up to $850 million in assets.
The Lindrum redevelopment will launch in Q4 2025, with construction scheduled to commence in Q1 2025
