60 Collins Street

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Earlier this year, Urban.com.au posed the question: "<a href="https://www.urban.com.au/news/is-2018-the-year-of-commercial-for-the-melbourne-market">Is 2018 the year of commercial for the Melbourne market?</a>" As 2018 has rolled on this notion has continued to be reinforced with developers snapping up and consolidating sites or scrapping their apartment developments all together, in favour of office. 

At the beginning of the week we <a href="https://www.urban.com.au/news/double-delight-pdg-releases-new-images-of-two-key-melbourne-projects">highlighted PDG's revised development intentions</a> for the former Toyota site at the top end of Elizabeth Street. Dubbed Elizabeth North the three tower commercial scheme replaces an earlier four building residential scheme, in response to the current state of the residential apartment market.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/elizabeth-north_pdg_0.jpg" rel="gallery-all"><img alt="PDG's Elizabeth North at 611-697 Elizabeth Street. Image: PDG" class="image-article-full-width-580px" height="327" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/elizabeth-north_pdg_0.jpg?itok=ZtVJfM7Q" title="PDG's Elizabeth North at 611-697 Elizabeth Street. Image: PDG" width="580"></a>

<figcaption>PDG's Elizabeth North at 611-697 Elizabeth Street. Image: PDG</figcaption></figure>The latest site set to switch to commercial use appears to be <a href="/developments/melbourne-vic-3000">555 Collins Street</a>, after Fragrance Group sold the site to Charter Hall for a reported $140m, according to the <a href="https://www.afr.com/real-estate/charter-hall-swoops-as-singaporeans-exit-in-140m-collins-st-deal-20181025-h174ij">AFR</a>. This comes after Fragrance only managed to achieve sales of 46 per cent of the 625 total apartments in the 12 month period since the project was launched to the market.

Charter Hall's recent acquisition adds to its existing land holding at 55 King Street which adjoins 555 Collins Street and now forms part of a combined development site of 4,627 sqm. Applying a plot ratio of 18:1 as per the Central City planning controls would result in a developable Gross Floor Area of 83,286sqm or just shy of 67,000sqm NLA. 

Taking into consideration floorplate sizes, setback requirements and overshadowing controls etc. a single commercial office building of around 30-35-storeys could be expected on the combined site. Charter Hall had previously investigated developing an office building of around 27-storeys at 55 King Street.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/55_king_0.png" rel="gallery-all"><img alt="An unbuilt concept for 55 King Street. Image: Charter Hall" class="image-article-full-width-580px" height="234" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/55_king_0.png?itok=bw9Zfs_5" title="An unbuilt concept for 55 King Street. Image: Charter Hall" width="580"></a>

<figcaption>An unbuilt concept for 55 King Street. Image: Charter Hall</figcaption></figure>In recent months Mirvac has acquired the 383 LaTrobe Street site from Sterling Global for a cool $122m, after the latter gained approval for a 70-storey mixed-use tower designed by Ateliers Jean Nouvel. A 5-storey office building currently leased by the Australian Federal Police (AFP) occupies the 2,850 sqm site. The AFP are due to relocate to 311 Spencer Street in late 2020. In the interim it is understood that Mirvac have engaged Cox Architecture to develop a commercial scheme for the site.

Dexus, which sold a development site at 32-44 Flinders Street with a permit for a 54-storey tower, has in recent months snapped up two sites at 52 and 60 Collins Street for $230m allowing them to proceed with single commercial development. The site is located opposite QIC GRE's 80 Collins Street redevelopment which is currently under construction.

Finally, Cbus Property has resumed demolition of 150 Queen Street to allow for the creation of a temporary park, while it finalises plans for a Bates Smart-designed commercial development. Cbus' extensive redevelopment encompasses a consolidated land holding comprising 140 and 150 Queen Street, 27 McKillop Street and 423 Bourke Street, and is expected to have a development value of around $1bn, not too dissimilar to its <a href="/buildings/collins-arch-447-collins-street-melbourne">Collins Arch</a> project. 

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/img-9337.jpg" rel="gallery-all"><img alt="Demolition has resumed on 150 Queen Street. Image: Mark Baljak" class="image-article-full-width-580px" height="387" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/img-9337.jpg?itok=s4u-c7JK" title="Demolition has resumed on 150 Queen Street. Image: Mark Baljak" width="580"></a>

<figcaption>Demolition has resumed on 150 Queen Street. Image: Mark Baljak</figcaption></figure>Based on the above, it looks like the commercial trend of 2018 is likely to drag on into 2019 as planning applications are lodged. Watch this space.

 
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Laurence Dragomir

555 Collins Street continues the commercial theme for 2018

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<a href="https://www.urban.com.au/news/melbournes-collins-street-continues-to-soar-as-construction-heats-up">Urban.com.au recently highlighted</a> the development activity along Melbourne's Collins Street, in which it was noted that The Reserve Bank of Australia's (RBA) building at 60 Collins Street represented a significant redevelopment opportunity.

Located on the north-east corner of Exhibition Street and Collins Street opposite QICGRE's 80 Collins development, the property has been listed for sale by the RBA - which is vacating the 16-storey building -  with a number of developers believed to have been circling.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/60_collins_street.jpg" rel="gallery-all" title="60 Collins Street. Images: Real Commercial | Jaganol"><img alt="" class="image-article-full-width-580px" height="420" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/60_collins_street.jpg?itok=_T6Yjc6t" title="60 Collins Street. Images: Real Commercial | Jaganol" width="580"></a>

<figcaption>60 Collins Street. Images: Real Commercial | Jaganol</figcaption></figure>To provide further context to the site, it is also covered by Heritage Overlay HO504 (Collins East Precinct) as it adjoins the heritage-listed Melville House (HO566) at 52-54 Collins Street. However, inclusion in the Heritage Overlay does not mean that a site cannot be redeveloped. When a permit for redevelopment is considered, heritage becomes a further consideration as part of the process.

Due to the site's location within this historically sensitive context, the design of any new structure(s) on the site becomes critical.

City of Melbourne's Amendment C258: Heritage Precincts Statements of Significance 2017 notes:

<blockquote>
Collins Street has often been identified as Melbourne’s leading street. This is due, in part, to the pleasant amenity and distinctive character of its eastern end. Its relative elevation and proximity to the Government Reserve and points of access to the City provided for its development as an elite locale.

Initially a prestige residential area, the Melbourne Club re-established itself here in 1857 and by the 1860s the medical profession had begun to congregate. By the turn of the century it was firmly established as a professional and artistic centre of Melbourne, with part of its fame due to its tree plantations in the French boulevard manner (hence the ‘Paris end’), which date from 1875.

A number of significant buildings come together in this precinct to form a series of prominent streetscapes. These include, at the western end, the Town Hall, Athenaeum, and Assembly Hall through to the Scots and Independent Churches, with the Regent Theatre through to the redeveloped T&amp;G building opposite.

The eastern end includes the early 19th century residential and artists’ studio buildings at the foot of No. One Collins, with the predominantly 20th century intact run to the north featuring Alcaston, Anzac Portland and Chanonry Houses, and Victor Horsley Chambers plus the nearby Melbourne Club.

At all times until the post 1939-45 war period, redevelopment took place in a quiet and restrained manner with an emphasis on dignity, harmony and compatibility with the intimate scale and pedestrian qualities of the street. These qualities are still embodied in significant remnant buildings and other artifacts, despite the intrusion of large developments.

The qualities of the street are also embodied in the social functions of the buildings which include elite smaller scale residential, religious, social, quality retailing and professional activities.

- Collins East Precinct, Statement of Significance (INCORPORATED DOCUMENT – CLAUSE 81 SCHEDULE Page 8)
</blockquote>

It goes on to list the following as key attributes of the Precinct:

<ul>
<li>The buildings remaining from before the Second World War.</li>
	<li>The boulevard quality of this end of Collins Street with street tree plantations and street furniture.</li>
	<li>A consistent height, scale, character and appearance of the remaining 19th and early 20th century buildings.</li>
	<li>The historic garden of the Melbourne Club</li>
</ul>
For the purposes of this study I have also included 100 Exhibition Street, which is currently occupied by a Mantra branded hotel. This was done to provide larger commercial floor plates, in addition to enhancing links through the site.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/60_collins_diagrams-site_context.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="431" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/60_collins_diagrams-site_context.png?itok=ZOFn7xXW" width="580"></a>

<figcaption> </figcaption></figure>The 60 Collins Street site alone has a footprint of 1,300sqm, whereas a minimum floor plate of 1,500sqm would be preferred. To achieve this with the application of setbacks based on the planning controls for the Capital City Zone, <a href="https://www.urban.com.au/news/bates-smarts-julian-anderson-discusses-commercial-development-feasibility-in-melbournes-central-city">a site of 3,000 sqm would be ideal</a>, however, the 60 Collins Street site benefits from a corner location so can rise 80m without setbacks.

Combining both 60 Collins Street and 100 Exhibition Street would create a development site of approx. 2,100 sqm.

The Victorian Liberal Party is also offloading the 6-storey Art Deco Centenary Hall at 104 Exhibition Street, completed in 1935 which is expected to fetch around $30m.

The site is covered by Heritage Overlay HO1028 and carries with it a 'Significant' grading due to its interiors, however it is not listed on the Victoria Heritage Register. It has not been included as part of the development study.

The process for developing the envelope for the combined 60 Collins And 100 Exihibtion Streets is outlined in the diagrams in the slideshow below, however some key figures and features include;

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/60_collins_diagrams_-_breakdown.png" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="410" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/60_collins_diagrams_-_breakdown.png?itok=IjvvUfSB" width="580"></a>

<figcaption> </figcaption></figure><ul>
<li>44-storeys/160m (to roof)</li>
	<li>Floor plates of 1,790sqm for lower 19-storey office levels = 32,220sqm GFA or approx. 25,800 sqm NLA</li>
	<li>Residential and hotel floor plates of 900 sqm across 25-storeys (or 20-storeys of office)</li>
	<li>This upper volume is limited to 50m in length to reduce massing and allow for the creation of a;</li>
	<li>North facing publically accessible landscaped rooftop terrace and bar, atop the streetwall </li>
	<li>Extension of McGraths Lane through to Collins Street</li>
	<li>Total Gross Floor Area: 54,720 sqm </li>
	<li>Plot ratio: 26:1 - this is achieved via new laneway, publically accessible rooftop and office and hotel use</li>
</ul>
Keep an eye out in coming weeks for a similar study on the 383 Latrobe Street site, which Mirvac recently purchased from Sterling Global, who had a permit for a Jean Nouvel designed tower.
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60 Collins Street

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