Suntec REIT completes premium grade office development in Australia

The retail space at Olderfleet is set to complete by end-2020.

Suntec REIT has completed its premium grade office development Olderfleet, 477 Collins Street in Melbourne, Australia, an announcement revealed. Suntec REIT co-owns the development with Australian property group Mirvac.

“With income commencement on 1 August, the development will further enhance Suntec REIT’s income and improve its earnings and distributions to unitholders with the long weighted average lease expire of approximately 11 years and annual rental escalations of between 3.5% to 4.0%,” said Chong Kee Hiong Suntec REIT Manager’s CEO.

Olderfleet is a premium grade office building with a net lettable area of 58,000 sqm comprising 56,000 sqm of office space and 2,000 sqm of retail space. The property has achieved a pre-commitment of 97% with additional 0.2% with Heads of Agreement signed. There is also a five-year rent guarantee on any vacant spaces.

Anchor tenant Deloitte is taking 29,000 sqm of space over 15 floors, and other organisations occupying the building includes Norton Rose Fulbright, Lander & Rogers, Urbis and Work Club Global.

The retail space at Olderfleet, which is set to complete by end-2020, will offer food and beverage options offering all-day dining including cafes and restaurants as well as a personal training fitness studio.