CostaFox sells out of Cremorne Office
Melbourne development group CostaFox has arranged a fund through and takeout of their entire Cremorne office development, initially slated for strata subdivision.
The purchaser, Bayley Stuart Capital has acquired the asset at 1 -11 Gordon Street via a land acquisition and fund through basis which will deliver the completed asset at a rate of $10,000/sqm or $50m.
Bayley Stuart Capital have in excess of $150 million under management across 10 assets, 40,000m² and approximately 50 tenants. In April this year, Bayley Stuart announced the acquisition of 600 Church Street – an eight-level building due for completion by the end of 2019. At the time, Bayley Stuart Capital managing director Andrew MacGillivray said 600 Church Street had “all the fundamentals backing the Cremorne office market”.
Their latest acquisition in Gordon Street will result in Bayley Stuart take all the leasing risks for the project. Designed by Fieldwork Architects, the project delivers approx 5,000sq m of NLA, 52 basement car parks and 40 bicycle spaces.
CostaFox will manage the development including the restoration of the original heritage building and the eight-storey tower above.
The developer acquired the 1,180sqm site for $12m in February 2018 from Icon Developments and planned to spend approx $25m on the construction.
Dawkins Occhiuto acted on the sale of the asset.