Growthpoint Properties (ASX:GOZ) has started work on a new office development at the Botanicca Corporate Park in Richmond in Victoria.
The new development will comprise over 19,000 square metres (sqm) of office accommodation across two towers in Melbourne’s CBD-fringe office market.
The Botanicca 3 construction tender was a highly competitive process with Growthpoint subsequently appointing Hacer Group commercial builder under a design and construct contract.
The development is expected to be completed in the second half of 2020.
Growthpoint expects the new development to deliver a fully let yield on development cost of between 7.5 per cent and 8.5 per cent, together with the opportunity for capital gain above development cost.
Shares in Growthpoint Properties (ASX:GOZ) last traded 0.83 per cent lower at $3.60 yesterday.