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Posted: 2018-02-23 13:15:00

South African-based Growthpoint Properties is expanding its holdings in the riverside Botanicca Corporate Park, with a new 20,000 square metre office building.

The move comes as retailer David Jones completes the move of 600 staff from Sydney’s CBD to Growthpoint-owned offices at the Swan Street, Richmond business park.

“We have two buildings there of about 23,000 square metres leased longer term to Country Road and David Jones," Growthpoint managing director Tim Collyer said.

“There’s a large, open carpark there and we’ve added value by obtaining a permit for a 20,00 sqm A-grade office building.

“Construction time is 18 months. When we push the button on that is to be determined by the board. That will depend on what happens with pre-leasing over the period ahead.

“It’s become very popular as a creative technology hub. We’re confident the quality of the office space will be very well received by the market.”

The five hectare estate is nestled close to the Yarra River and is close to a busy cycling path, three railway stations, a tram route and the M1 freeway entrance. It is just five kilometres from Melbourne’s CBD. Other tenants include Harris Scarfe, Mimco, Forever New and Witchery.

Growthpoint won a permit for the site from the City of Yarra last year and has appointed Colliers International agents Rob Joyes and Kevin Tutty and JLL agent Joshua Tebb to market the space.

The Botanicca Business Park was a joint venture development between R Corporation and Macquarie Bank that kicked off in 2004 with a major pre-leasing deal to GE Capital.

There are some other residual finance tenants, including Wells Fargo, but the tenant profile has significantly shifted towards retailers who are moving out of their historical ground in Cremorne, Mr Joyes said.

“While the Church Street precinct in Cremorne is attractive to the tech companies, this area is more attractive to the traditional corporates and retailers,” he said.

“GE had a fairly sterile environment but the retailers have really changed the atmosphere down there.''

It is also cheaper. Rents for new space in the gritty industrial atmosphere of Cremorne are in the mid-to-high $500 a square metre range whereas Botanicca asking rents are in the high-$400 a square metre.

“That’s a $100 differential. There’s a cost benefit in being there,” he said.

The proximity to the freeway is also attractive to tenants who have staff on the road or coming in from the eastern suburbs, he said.

The new building will offer 2000-plus square metre floor plates set in sprawling gardens.

It's not the only new building springing up at Botanicca. American hotel giant Marriott International is planning to open a new 168-room Element hotel and Garda Capital is building a five-level office project at 588A Swan Street.

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