Castlerock to build $49 million suburban office building for state government

Frankston, a coastal suburb 41km southeast of Melbourne’s CBD, is at the center of state government investment, including the $1.1 billion redevelopment of Frankston Hospital, which began on last month and is expected to be completed in 2025.

Near the new site of government offices, Melbourne developer Pace has submitted plans to build a $150 million apartment tower on the former cinema site at 438-444 Nepean Highway.

Castlerock general manager Adam Bronts said The Australian Financial Review the fund manager had already secured pre-commitments from its pool of wealthy investors and relatives for the development of Frankston following a soft, off-market capital raise in August.

“Currently, investors in the APT2 fund are getting a return of 6.7% after fees. It’s quite attractive, Mr. Bronts said.

“We have a big backlog of investors who want to come in.”

Mr. Bronts has promised to deliver the greenest building in the Frankston CBD with a minimum energy and water rating of 5 NABERS stars.

Facilities will include “CBD-quality” end-of-trip facilities, including 50 bike slots, e-scooter parking and charging facilities, changing rooms and showers.

The design of the building comprising two wings that extend from the main entrance and an atrium is inspired by the local fauna – the great eastern egret.

Castlerock’s successful tender for the Frankston project follows raising $90 million last year to help fund the purchase of an office building in Ipswich, around 40 miles east west of Brisbane.

In 2020, Castlerock paid over $57 million for a five-storey office building in Wollongong’s CBD that houses the Australian Taxation Office, a record for the regional town.

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