Despite talk of uncertainty in the construction industry, developers have committed to $700 million worth of building works soon to commence in Melbourne.
Construction will take place in the Melbourne suburbs of Docklands and Fisherman’s Bend, two key areas of urban growth.
Demolition and clearing works have commenced at 1000 La Trobe Street, opposite Marvel Stadium, where Chinese developer Poly will build its $500 million office tower.
The tower, soon to be built by Probuild, will soar 23 storeys high and cover a total area of 40,000 square metres. It was designed by Australian architecture firm Woods Bagot.
No leasing deals have been confirmed, but it is expected that Myer will take up nearly a quarter of the building. 1000 La Trobe Street is scheduled for completion at the end of 2021.
Original plans for the site were for a 500-unit residential tower, but Poly changed its plans after the apartment market began to decline. The commercial development is also the first of its kind in Melbourne in 30 years because it did not require pre-commitments for funding.
Meanwhile, works in Fisherman’s Bend have commenced on The Normanby, a $200 million mixed-use development.
Situated at 199-201 Normanby Road, the 40-storey tower is being developed by Capital Alliance and built by Crema Constructions. The development will contain a hotel run by Marriott and apartments in one, two and three bedroom configurations.
Capital Alliance will keep the hotel as an income producing investment. The Normanby is scheduled for completion in early 2021.
Mohan Du, chief executive for Capital Alliance, said he has already sold nearly half of the apartments and secured construction funding from an Australian bank.
Mr Du also said that mixed-use developments were the most relevant in today’s market.
“The appointment [of Crema] strengthens our view that although economic fundamentals have drastically changed for the industry, there is still life for projects that are carefully thought through,” said Mr Du.
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