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

27 June 2024

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.”