Charter Hall Office REIT & Cbus Property announce joint development of 171 Collins Street, Melbourne
   
Charter Hall Office REIT (ASX: CQO) (formerly Macquarie Office Trust) and Cbus Property, the wholly owned subsidiary of Cbus, the national superannuation fund for the construction and building industry, have entered into a joint development agreement to deliver the proposed 20 level office tower at 171 Collins Street.  The agreement will see CQO sell 50% of its interest in 171 Collins Street, Melbourne to Cbus Property..

On completion, the development will include over 30,000 sqm of lettable area including 16 floors of premium commercial office space, a high-end retail arcade linking Collins Street and Flinders Lane, and boutique office suites in the prestigious, heritage-listed Mayfair Building on Collins Street.

The development has received all necessary planning and heritage approvals, allowing project commencement once a leasing pre-commitment is secured. CQO and Cbus Property are currently in advanced discussions with a number of prospective high-calibre tenants for the property.

Established in 1984, Cbus is one of Australia’s largest super funds with around $14 billion in funds under management, more than 600,000 members and in excess of 60,000 participating employers.

Chief Executive Officer of Charter Hall Office REIT, Mr Adrian Taylor, said: “We are delighted to have the support and involvement of Cbus Property in this very exciting project. The joint venture unites two leading property investors with complementary project development and asset management experience.

“On completion, 171 Collins Street will be the first new project in this coveted prime precinct in Melbourne’s CBD in over 20 years. The development will deliver a new-generation office within this prestigious location and will also incorporate market leading environmental initiatives within a building that has been carefully crafted to preserve the rich cultural heritage of the site.”

Adrian Pozzo, Chief Executive Officer of Cbus Property said: “171 Collins Street offers a unique investment opportunity for Cbus Property to develop and own another premium landmark office building in the Melbourne CBD, complementing the recently completed twin tower development at 181 William Street & 550 Bourke Street and also 8 Exhibition Street. This investment reinforces our commitment to the Australian office market and we are delighted to join Charter Hall Office in this exciting development opportunity. It is estimated the development will provide in excess of  1,000 jobs over three years, many of whom will be members of the Cbus Superannuation Fund.”
   
Mr Taylor said: “The project has flexibility and can be delivered from as early as mid-2013 and therefore we expect to be in a strong position to secure commitments from a number of Melbourne’s leading corporate tenants who desire a Collins Street address. 171 Collins Street represents a unique offer to the market – a brand new, efficient, premium office building, at the ‘East’ or ‘Paris End’ of Collins Street, with exceptional amenity, views, large floor plates and market leading environmental standards.” 

“We can confirm funding arrangements have been agreed and the development is ready to commence upon securing a tenant pre-commitment. Our joint financial commitment and proven track record in delivering premium quality assets like 171 Collins Street will set the foundation of what is to be another successful commercial property development for future tenants and the owners”, Adrian Pozzo said.