Cromwell’s bet on changing Melbourne CBD proves successful

The shifting of Melbourne's CBD closer toward Docklands continues apace, according to Cromwell Property Group, who have announced a new long term lease on Collins Street.

Open Universities Australia will move into 700 Collins Street in January 2017 on an 8-year lease and will occupy 2,682 sqm.

Cromwell purchased the building in 2004, and the 100 percent occupancy rate was achieved after securing the building's two major tenants to long term lease agreements.

The Bureau of Meteorology has executed a new lease for a further 10 years of their 15,500 sqm space. 

Melbourne train operator Metro has consolidated its space in the building, taking another 2,500 sqm that will see it occupy over 10,000 sqm for the next decade.

The high demand for the area makes the 2004 investment a real success for Cromwell, said Damian Horton, Cromwell’s Head of Property.

“As Melbourne CBD is shifting further westward along Collins Street and closer to Docklands, Cromwell’s investment has proven to be forward thinking. We were among the first to invest in what is now called ‘mid-point’, a highly sought after area,” Mr Horton said. 

“It’s an investment true to our philosophy. We try to carefully evaluate the potential of each of our properties to see where the demand will be and 700 Collins Street is proof of the effectiveness of this approach. 

“It also validates our strategy to actively manage our assets to enhance their value, and make sure that our tenants want to stay, and in doing so, keeping the turnover as low as possible.” 

The A-Grade, 17-level office tower is located at the gateway to the Docklands Precinct at the western end of the Melbourne CBD.

The building, which was refurbished last year, offers 33,848 sqm of modern office space and retail areas, and a three-level carpark accommodating 304 cars.