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Developer Time &amp; Place has announced the sale of its East Melbourne landmark commercial project to ARA Australia in a structured deal worth approximately $330 million on completion. 
The partnership will see <a href="https://www.propertyobserver.com.au/timeplace.com.au/" target="_blank">Time &amp; Place</a> take responsibility for the development management and construction of the project, alongside joint venture partner Golden Age Group, with ARA to fund-through, manage and own the asset.
The deal is the latest in a string of fund-through arrangements in recent years as the commercial office market supply tightens while offering appealing capital returns for global investment managers.
Time &amp; Place commenced an expressions of interest campaign in conjunction with JLL in August 2019 which yielded significant interest from a range of local, off-shore and institutional groups.
Tim Price, Time &amp; Place founder and director, said the deal, which was finalised last week, reflected the current state of the commercial market and appetite from global investment funds.
“ There has been a significant trend outbound from the CBD by both tenants and institutional investors in recent years as lack of supply has shifted the focus to Melbourne’s CBD fringe.
“ This has presented an enormous opportunity for developers to capitalise on this scarcity by securing well-located sites and building premium-grade commercial assets literally on the CBD’s doorstep, that attract corporate-grade tenants and institutional long term owners.
“ We received an overwhelming response to the expression of interest campaign and are both pleased and proud to enter into partnership with a global powerhouse like ARA to fund and own the asset on completion” he said.
Commenting on the partnership, ARA Australia CEO and country head, Mr. David Blight said “we are delighted to be partnering with Time &amp; Place on this exciting project and look forward to commencing construction in the near future. ”The project is an outstanding ‘build- to-core’ opportunity. Together with our capital partner we look forward to funding the delivery and retaining the long-term ownership of this new, high-quality asset.
He said ARA Australia had been attracted to the project’s focus on sustainability and technology, the quality of the developer as well as its high-quality design by architects FJMT. He added that the project promised strong leasing fundamentals.
“While we’re a global business, our local team has an intimate understanding of the Australian markets – with low vacancy and limited quality stock coming on-line, 200 Victoria
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Parade represents a strong opportunity to secure a strategic foothold in a prestigious East Melbourne location,” said Mr Blight.
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The deal comes as Time &amp; Place has become increasingly active in the commercial and industrial sectors, having recently announced the MaxCap Industrial Opportunity Fund, and the acquisition of five prime industrial sites in Melbourne’s premium industrial areas with a sixth site under final due diligence in the sought-after Sydney market.
“ We are in an aggressive acquisition phase and actively seeking further commercial and industrial sites across the Melbourne fringe and outer growth regions, as we look to focus our attention on these sectors for the short to medium term,” Price said.
The 10-storey <a href="http://www.victoriaplace.com.au" target="_blank">200 Victoria Parade project</a> has been designed by renowned architectural studio FJMT. Comprising approximately 26,000 sqm of net lettable area, the project also includes world-class end-of-trip facilities, a sky terrace, expansive city views and a collection of retail, café and associated amenities.
Once completed, the office building will provide a focus on wellness, targeting a five-star Green Star office design, a 5.5-star NABERS (National Australian Built Environment Rating System) and Gold WELL rating by the International WELL Building Institute; including fitness and lifestyle amenities such as 160 bicycle spaces, 22 showers, 308 lockers and a bike repair station.
The deal will take immediate effect.
Leasing for the building is being managed by Colliers International. 
 
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