Goldfields to Build Chapel Street Office Tower as Office Construction Booms
Approvals for a new office tower on Chapel Street South Yarra have been granted to Melbourne developer Goldfields Group, headed by Marco Gattino.
The news comes as a wave of suburban office buildings are approved across Melbourne, sustaining Victoria’s construction boom.
Plans for the new development on 627 Chapel Street reveal a 24,000 square kilometre office space covering 24-storeys. The tower will include a retail level on the ground floor.
The spectacular glass tower was designed by Sydney-based architecture firm, COX, and has a construction budget of $90 million. Building is scheduled to commence around July this year.
Goldfields first applied for permits last June, and following a 7 month revisions process by the City of Stonnington, approvals were granted just before the new year.
627 Chapel Street was acquired for a price-tag of $50 million after being sold by Paul Fridman in late 2017. At the time, Fridman’s development outfit Fridcorp had failed to gain approvals for their ambitious 37-storey office tower.
When complete, the Goldfields tower is expected to have a value of $300 million.
While speculation arises as to the tenants of the new tower, Mr Gattino indicated that the tower will include innovative and cutting-edge features.
“627 Chapel Street sets the scene for future-focused business and will attract progressive occupiers with progressive needs.”
Marco Gattino’s team are currently in conversation with a number of prospective occupiers of the building.
Marco Gattino is also part owner of research, communications and lobbying company The Civic Group. The organisation is known to have donated heavily to Victorian Labor and Liberal parties on behalf of property developers.
Currently at the site lies a 6-level office tower, formerly developed by legendary Melbourne developer Michael Yates in the late 1980s.
The tower is adjacent to the Capitol Grand, a luxury apartment development owned by millionaire Larry Kestelman. The new tower will also make its home within South Yarra’s Forrest Hill Precinct, a site replete with up-and-coming high-rise developments.
In a statement to The Age newspaper, Mr Gattino said, “When we acquired the site, the environment was already positive for commercial. A-grade suburban rents have gone up 10 per cent. They’re approaching $600 a square metre and that was unheard of a few years ago.”
Civic Group’s communications arm, Civic Reputation, has been assigned with handling public relations for the Chapel Street office tower.
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