Sydney based developer, Billbergia have lodged plans for the construction of a new mixed use development at the Hewlett Packard Headquarters at 410 Concord Road, Rhodes.
Billbergia propose to demolish the existing car park structure and to develop a new 9-storey commercial office building comprising 16,169sqm of GFA together with 844 total car spaces across the site, at a cost of $72m.
The proposal will retain the existing 19,817sqm commercial buildings currently occupied by HPE, who are expected to relocate to the new building upon completion, paving the way for further development of the remainder of the site.
Hewlett Packard joined forces with Billbergia in 2018 to maximise the development potential of the large 3.4ha site at Rhodes which was estimated to be worth $150m and could ultimately accommodate over $1billion of mixed use space.
In January 2018, HP also sold its Melbourne campus site for about $88 million on a yield of just 3.6 per cent.
The site is currently zoned B7 Business Park and has a maximum height limit of 28m and an FSR of 2.26:1.
The development complies with the majority of the planning controls however Billbergia are seeking to exceed the current height limit of 28m to create a better design outcome across the whole site.
Billbergia’s proposal establishes a new FSR of just 1.03:1, well short of the allowable floor space. Given the height of adjoining buildings in the vicinity, Billbergia feel it would not be unreasonable to increase the height of the building as opposed to developing larger low rise buildings which eliminates the opportunity better open spaces in the area.
The APN Industria REIT own the Rhodes Corporate Park situated adjacent to the HP Site. APN reported this week that rents in the park have grown 11% to range from $450 – $475psqm, in line with those at Macquarie Park. APN hold the assets at a book value based on a 5.75% cap rate which equates to approximately $8,000psm in capital value.
If approved, Billbergia expect to be able to commence construction prior to the end of 2021.
Billbergia are familiar face in the Rhodes district having developed many of the buildings in what has become a thriving metropolis in the Centre of Sydney.
Billbergia’s current construction works focus on the development of Rhodes Central, a vibrant residential community containing over 1,200 new apartments, commercial space, a major supermarket and a substantial retail offering. The main residential tower also features a heliostat to reflect light to an otherwise shaded area.
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