In 2005-6, Macquarie Office Trust was finding it difficult to buy investment property in Australia without causing income dilution for its investors and so with a view to enhancing investor returns, the decision was taken at board level to participate in selected office development projects in quality locations.

 

Working with another property division of Macquarie, we were able to acquire the former “Shop of Shop” site in Collins Street, Melbourne for a proposed new premium-grade office development, the first in the Paris End of Collins Street for over 20 years.

 

The site faced a number of challenges, including a number of unique planning constraints, the presence of a heritage building along the Collins Street frontage which needed to be incorporated into the design and a cluster of neighbouring buildings, whose owners and tenants needed to be comfortable with the building we proposed to construct.

 

Furthermore, once these matters were resolved to all parties’ satisfaction, the Global Financial Crisis adversely impacted the Trust’s ability to pay for the proposed development, meaning that a partner with sufficient financial capacity had to be introduced to assist with funding the development.

 

Through our extensive property network we were able to source and negotiate a joint venture arrangement with an appropriate partner and in late 2010, mining giant BHP Billiton signed a pre-lease over 12,000 square metres for its new global headquarters, allowing construction to commence on site.

 

The building is due for completion in May 2013 and will be an impressive and striking addition to the Melbourne skyline.

 

: : EXAMPLE 1

171 Collins Street, Melbourne

 

In 1999, the Macquarie Industrial Trust acquired a portfolio of warehouses from Brambles Limited, which included some prime industrial land on the corner of Boundary and Fitzgerald Roads in Laverton, Victoria.

 

Within 6 months of acquisition, together with our joint venture partner, we were able to capitalize on the strong occupier demand for the site by securing Cat Logistics on a 15 year pre-lease. The building was completed in 2001 just after the merger of Macquarie Industrial Trust with what is now the Goodman Group.

 

The facility has won numerous business awards for its design and operating capacity, and remains a core asset of the Goodman Group to this day.

 

: : EXAMPLE 2

Cat Logistics DaimlerChrysler Distribution Facility, Cnr Boundary and Fitzgerald Roads, Laverton