Icon Developments continues counter cyclical development program, commences construction at Cremorne office project

Icon Developments, wholly owned by Japanese property and construction giant Kajima, has commenced construction at Cremorne Place, a nine-level 13,000m2 office building it is developing in conjunction with Zagame Property at 120 Cremorne Street, Cremorne Victoria.

The project, designed by Architectus, is one of only a small number of new office projects starting construction. A leasing campaign for the office floors will commence shortly.

Icon Developments will continue its counter cyclical development program in the current cautious real estate market by kicking-off construction across a number of its developments in 2024. These include Motif 3220 in Geelong, Emerald Place in South Melbourne, 499 Kent Street in Sydney’s CBD and two luxury residential Auckland projects – Domain Collection and York House.

It comes as Icon Developments has exchanged contracts to acquire a strategic logistics site located at 1 Broadfield Road, Broadmeadows Victoria. The 4.4-hectare site will be developed into a $90m+ multi-unit logistics estate with a proposed NLA of 28,000m2.

This marks the first acquisition under a strategic joint venture with Elanor Investors Group, to establish a high quality industrial and logistics portfolio. The strategy for the JV is to grow a $250M+ medium to large scale industrial platform along Australia’s east coast.

Matthew Bourke, Icon Developments CEO, said the financial backing of parent-company Kajima allows their business to be more investment selective. Tokyo-listed Kajima Corporation generates annual global revenues of about $25 billion.

“We now have a legitimate and sustainable development pipeline with an end value of circa $1.5bn across all built form sectors,” said Bourke.

“This latest industrial and logistics acquisition is a new class of investment for Icon Developments. We will continue to partner with industry leading developers in areas that may be seen as a departure from our core business model,” he concluded.

Icon Developments Chief Investment Officer, Brinn Tavener added:

“The Broadmeadows acquisition and our newly-formed partnership with Elanor is an exciting one, we’ve taken a long-term view of the industrial & logistics sectors and we’re looking at other brownfield sites which we intend to add to the portfolio over time.”