The Victorian Government has granted development approval for 140 and 150 Lonsdale Street, part of the Charter Hall Group’s $1.2 billion Wesley Place precinct.
The site-specific Planning Scheme Amendment was approved for 140 Lonsdale Street to accommodate the specialist requirements of the Australian Federal Police (AFP) at their new Victorian State Office.
Development approval was also granted for a major upgrade and repositioning of 150 Lonsdale Street.
The 140 Lonsdale Street development will a see new $290 million, 22,750 square metre tower built that will be fully occupied by the AFP on a 30-year lease. 150 Lonsdale Street’s $50 million refurbishment will transform it into a $300 million commercial building.
Both assets are owned by the $3.6 billion Charter Hall Office Trust (CHOT).
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Charter Hall’s Regional Development Director Simon Stockfeld said the Development Approval’s are the final step towards delivering the three future-ready commercial towers onsite at Charter Hall’s $1.4 billion Wesley Place precinct.
“It is an exciting time for the precinct, our tenant customers and stakeholders, with the fully pre-committed 130 Lonsdale Street approaching practical completion in the next week,” he said.
Charter Hall Managing Director and Group CEO David Harrison thanked the Victorian Government for its ongoing support of the property industry via its Building Victoria’s Recovery Taskforce.
The 140 Lonsdale Street development will provide over 560 AFP employees with an operations facility in the centre of the CBD. Construction will target a 5 Star Green Star and 5 Star NABERS energy ratings.
The upgrade to 150 Lonsdale Street will see significant refurbishment works to incorporate a six-level podium extension, a premium ground floor lobby experience, a new pedestrian thoroughfare from Lonsdale Street through to Little Lonsdale Street and direct access to the wider Wesley Place precinct.
150 Lonsdale Street will also undergo a number of sustainability upgrades, aiming for a 5 Star NABERS rating and 5 Star Green Star rating, as well as a WELL rating and a WiredScore assessment which rates a building’s digital infrastructure.
CHOT Fund Manager Trent James said 140 Lonsdale Street and 150 Lonsdale Street are key assets within the CHOT portfolio.
“Our CHOT portfolio is weighted towards core CBD assets. Once completed, 140 Lonsdale Street and the repositioning of the well located 150 Lonsdale Street will enhance CHOT’s exposure to this tightly held Melbourne CBD’s Parliamentary precinct,” James said.
Preliminary site works have commenced at 140 Lonsdale Street with practical completion due in October 2022. Works are expected to commence at 150 Lonsdale Street in July 2020 with completion targeted for late 2021.