Goldfields signs South Yarra co-work office deal
Goldfields Group will team with JLL’s Flex Space division to operate a three level co-working space, The Loft, at a South Yarra office set to open this month.
The facility will occupy 3247 square metres of 627 Chapel Street.
A fit out by Cox Architecture is costing nearly $5 million.
Also known as Goldfields House, the 24-level, 24,000 square metre office replaced a site one holding north of Toorak Road, which the developer acquired from Fridcorp for $50m in late 2017.
The end value has been put at $300m.
Earlier this month, Grocon’s Build to Rent division, Home, paid $37.5m for a 2070 sqm block – the old Ojay headquarters – at 671 Chapel St, in this pocket, following a deal brokered by Emmetts Real Estate’s Charles Emmett and Andrew Milligan.
Win-win-win
Prior to the COVID lockdowns, but especially since, a rising number of office tenants have been seeking buildings with co-working spaces allowing them the flexibility to expand on an as-needs basis, avoiding the need to sign a longer, permanent lease, or commit to more space than required.
The arrangement can suit landlords, too, which can charge rates 25 per cent, or more, over market levels (story continues below).
The concept is increasingly benefiting users as well – for example, The Loft members will have access to Goldfields House’s amenities including a rooftop bar and restaurant and infrared saunas.
“From the outset we knew we had to find the right partner to bring The Loft to life and offer businesses something different to the typical co-working office,” Goldfields chief executive officer Lachlan Thompson said.
“After inviting operators to apply through an international expressions of interest campaign, we had multiple complying bids and JLL immediately stood out to us,” he added.
The agency operates venues of this type for landlords in Sydney, London, New York and Chicago.
Including The Loft space, two thirds of Goldfields House is accounted for.
Colliers’ Matt Cosgrove and Travis Myerscough with JLL’s Matt Brown-Greaves and Josh Tebb are the building’s leasing agents.
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