Charter Hall receives development approval for 140 and 150 Lonsdale Street, part of its $1.4 billion Wesley Place precinct

Charter Hall Group (Charter Hall or the Group) has today announced that the Victorian Government has approved a site specific Planning Scheme Amendment at 140 Lonsdale Street to accommodate the specialist requirements of the Australian Federal Police (AFP) at their new Victorian State Office and Development Approval has been granted for a major upgrade and repositioning of 150 Lonsdale Street.

Part of the future-ready Wesley Place precinct, 140 Lonsdale Street will comprise a new $290 million, 22,750sqm building fully occupied by the AFP on a 30 year lease with multiple options while 150 Lonsdale Street’s $50 million refurbishment will transform it into a prime $300 million commercial building. Both assets are owned by the $3.6 billion Charter Hall Office Trust (CHOT).

Preliminary site works have commenced at 140 Lonsdale Street with practical completion due in October 2022. Works are expected to commence at 150 Lonsdale Street in July 2020 with completion targeted for late 2021.

Charter Hall’s Regional Development Director, Mr Simon Stockfeld, said “The Development Approval’s of 140 Lonsdale Street and 150 Lonsdale Street are the final step towards delivering the three future-ready commercial towers onsite at Charter Hall’s $1.4 billion Wesley Place precinct. It is an exciting time for the precinct, our tenant customers and stakeholders, with the fully pre-committed 130 Lonsdale Street approaching practical completion in the next week.”

Charter Hall Managing Director & Group CEO, David Harrison, said “We thank the Victorian Government for its ongoing support of the property industry via its Building Victoria’s Recovery Taskforce, and prioritising shovel-ready projects such as 140 Lonsdale Street and 150 Lonsdale Street and our recently approved 555 Collins Street project.”

140 Lonsdale Street will provide over 560 AFP officers and employees with a first class operations facility in the centre of the CBD and a future focused, fit-for-purpose building that meets the evolving needs of federal policing in Victoria. 140 Lonsdale Street will target 5 Star Green Star and 5 Star NABERS energy ratings.

“140 Lonsdale Street demonstrates Charter Hall’s ability to secure a long-term lease with such a high-calibre tenant such as the AFP and design a bespoke property solution that will enable and support the AFP’s important work around national security, counter terrorism” said Mr Harrison.

The major upgrade to 150 Lonsdale Street will see significant refurbishment works to incorporate a six-level podium extension, a premium ground floor lobby experience, a new pedestrian thoroughfare from Lonsdale Street through to Little Lonsdale Street and direct access to the wider Wesley Place precinct. It will also provide tenant customers with a range of premium and flexible amenities, including a revitalised retail offering, dedicated concierge, a wellness centre available for exclusive use, hotel like end-of-trip facilities and a new Business Hub on the first level.

150 Lonsdale Street will also undergo a number of sustainability upgrades, targeting a 5 Star NABERS rating and 5 Star Green Star rating, as well as a WELL rating and a WiredScore assessment which rates a building’s digital infrastructure.

CHOT Fund Manager, Mr Trent James, said “140 Lonsdale Street and 150 Lonsdale Street are key assets within the CHOT portfolio and demonstrate our ability to add value through both build to own and refurbishment projects.”

“Our CHOT portfolio is weighted towards core CBD assets. Once completed, 140 Lonsdale Street and the repositioning of the well located 150 Lonsdale Street will enhance CHOT’s exposure to this tightly held Melbourne CBD’s Parliamentary precinct” said Mr Trent James.

Mr Simon Haussegger, Director at Cox Architecture, said “Cox is really excited to have been part of Charter Hall’s vision for the Wesley Precinct and 150 Lonsdale Street will be a really important contribution to the precinct, providing the existing and future tenant customers with enhanced amenity spaces, food and beverage offerings, and a new connection through to the open space and Little Lonsdale Street.”

Upon completion, the Wesley Place precinct will provide three future-ready office buildings – 130 Lonsdale, 140 Lonsdale and 150 Lonsdale Street – amongst public landscaped grounds, world-class food and beverage as well as the restoration of the Wesley Church and an additional four heritage buildings on the 1.1-hectare CBD site.