Daniel Grollo's Grocon joins forces with Harry Stamoulis on 555 Collins Street tower project

Daniel Grollo’s Grocon development group is partnering with private developer Harry Stamoulis on plans to build a $600 million office tower at 555 Collins Street.

An earlier proposal by the Stamoulis Property Group to build a 404 metre tower on the Western side of Collins Street, just behind the Rialto Tower, was deemed too tall and there were also concerns it would cast a shadow over the Yarra River.

Grocon and Stamoulis are working on a proposal for an office tower to feature around 60,000 square metres of prime space and are already seeking out potential anchor tenants, reports the Australian Financial Review.

There is currently a 24 storey building on the site built in 1975 and owned by the Stamoulis Property Group. It is leased to NAB, with the lease due to expire in 2014.

The partnership with Grocon, should add gravitas to the Stamoulis proposals – the Rialto Tower at 524 Collins Street, once the second tallest building in Melbourne after the Eureka tower was developed by the Grollo family and completed in 1986.

It is all part of efforts to regenerate the less glamorous Western end of Collins Street with construction now underway of the 26 storey 55,000-square-metre office building at 567 Collins Street on the site of a former ‘black hole’.

567 Collins Street, being built by Leighton Contractors and due for completion in 2015, was acquired by Investa Office Fund (IOF) and Investa Commercial Property Fund (ICPF) earlier this year and has signed Richard Branson's Virgin Active gym group as ground floor tenants with other tenants including law firm Corrs Chambers Westgarth who will lease 8,800 square metres.

GPT has recently “revitalised” its premium grade 530 Collins Street, which now has a 5.5 star NABERS Energy rating.

Office space in the tower was advertised for lease last year via an advertising campaign that included street performers and tram advertising, which won Jones Lang LaSalle the REIV’s 2012 Commercial & Industrial Marketing Awards.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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