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Goldfields Group secures Oreana as tenant for new premium South Yarra office building
Posted by Commercial Ready on Nov 10, 2020

Oreana, led by Sass brothers (Tony & Steven), are relocating from premises at 484 St Kilda Road into a whole floor 1,179sqm office on Level 16 of 627 Chapel Street, South Yarra, which boasts sweeping views of the Yarra River, MCG and CBD.

The 5-year deal with options was negotiated by Melbourne Acquisitions agency director Dominic Gibson and was struck at $600 per square metre plus GST and Outgoings excluding car parks at $350 each.

Mr Gibson said despite there being a lot of ‘table discussion’ at the moment about the strength of the office leasing markets due to Covid-19, 627 Chapel was an easy choice for tenants given the surrounding amenities, public transport and location which are unrivalled for a building of this quality and calibre.

South Yarra is very different to what St Kilda Road, Richmond and Cremorne offers both from a lifestyle and accessibility point of view. That was the main reason for Oreana’s decision to relocate and both company directors live locally in Stonnington and wanted to be closer to all the action South Yarra has to offer.

Goldfields Group - COO, Lachlan Thompson said tenant enquiry for the building has been increasing significantly as lockdown restrictions have eased and construction by the builder ICON was well ahead of schedule and expected completion of the $300 million 24 storey 24,000sqm office tower is early November 2021 with several other prominent tenants also soon to be announced.

“Despite the obvious challenges we are all facing, I have been really encouraged with the constant stream of quality enquiry we have received throughout the last 6 months, most pleasing being the genuine spike in discussions we are having with medium to large CBD tenants.” Mr Thompson said.

“The flight from CBD office occupiers to Metro locations is real, we are dealing with it on a daily basis and it’s extremely positive to see.”

Mr Thompson additionally went on to say that “The economic climate is causing everyone to rethink their head count however what is great to see is that the tenants we were dealing with (Pre Covid) are coming back to pick up where we left off in March, albeit in most cases a slightly smaller overall requirement, it’s proving that the location and quality of this asset is at the forefront of tenants and TR’s minds.”

The 2,980sqm regional freestanding supermarket sold for $25.1 million, which represented a 3.65% yield (including adjoining land) and 3.97% yield (excluding adjoining land). Stonebridge Property Group acted as the sole agency on behalf of a private family that developed the supermarket in 2004. The property was sold to a Melbourne based private investor.
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