Frasers Property Australia and ESR Australia acquired a 4.67 hectare site in Melbourne, Australia, and secured Nissan Motor Co. Australia as the anchor tenant, the two property companies said in a filing to SGX Friday.
The site, located at 254 Wellington Road, Mulgrave, has planning approval for 60,000 square meters of commercial space, a 752 square meter cafe/retail area and 2,297 cap spaces, the filing said, adding space incorporating a gym, restaurant and outdoor open area is also likely.
The business park, which will include four office buildings, is expected to have an end value of A$400 million (S$377.83 million or US$276.54 million) when completed, the filing said.
“This is an exciting project for ESR and Frasers Property as we commence a large-scale business park development in Melbourne’s south-east. We are seeing Mulgrave emerge as a growing suburban commercial office market,” Phil Pearce, CEO at ESR Australia, said in the statement.
“Securing a high-quality customer such as Nissan as our first tenant further supports the strategy of investing in and developing market-leading real estate and underlines the favorable outlook for the development in this sought-after location,” Pearce added.
Nissan Australia will take five levels of an eight level building, with 9,000 square meters of office space, a 1,850 square meter workshop and 550 car bays, the filing said. Completion of Nissan Australia’s building is expected by May 2020, while the entire development is expected to be completed by late 2025, it said.
Stephen Lester, Nissan Australia’s managing director, said his company’s current office is more than 40 years old, and it was excited to move into new custom-built space.
The new Nissan head office will be the national headquarters for the larger Nissan business as well as the finance arm, Nissan Financial Services Australia, its technical trainers and the Victorian state office, Lester said.
The project is a 50:50 joint venture, with Frasers Property securing the site, while ESR is set to undertake the development, the filing said.
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