10 Nov 2015

Cbus in talks to build police HQ

Super fund developer Cbus Property is in talks with the Victorian government to build a new $300 million police headquarters on Spencer Street in the Melbourne CBD, at a site it controls with Australia Post.

The new facility of about 40,000 square metres is next door to the $240 million City West Police Complex, which Cbus Property recently completed.

Both the existing complex and the proposed police headquarters sit on a 11,750 square metre previously occupied by the Australia Post Mail Centre.

With a stake in the freehold of the land, Australia Post would remain a joint venture partner with Cbus Property for the new facility.

The proposed headquarters at 311 Spencer Street and the recently developed police complex are also close neighbours to the Melbourne Assessment Prison on Spencer Street.

“While the concept of a consolidated police precinct has merit, we will ensure that this project offers value-for-money to Victorians before any deal is done,” Treasurer Tim Pallas said.

Also nearby is Southern Cross Station. Across the road from the police site, Far East Consortium is developing an apartment complex that will include a new Ritz Carlton hotel.

Cbus Property has already sold a half stake in the police complex it developed, to global funds giant Invesco for close to $120 million.

Elsewhere in the Melbourne CBD, Cbus is building an upmarket apartment tower on Spring Street, while pursuing a plan for a $1.25 billion mixed use project on a large site in the heart of Collins Street.

If the super fund developer’s proposal with the state government is finalised, the police will move from their current headquarters at the World Trade Centre, overlooking the Yarra River.

Listed investor Abacus Property Group, backed by private equity group KKR, acquired a 70 per cent million in the World Trade Centre last year for $120 million last year.

Developer Clement Lee’s Asset 1 retains the other 30 per cent.

The WTC has Victoria Police as its anchor tenant across around half the complex with the lease expiring in 2020.

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