ICON Developments, owned by Japanese property and construction giant Kajima Corporation, has secured two new projects in Melbourne as the global company looks to expand its presence in Australia and New Zealand.
The recent activity includes the acquisition of 116 Cremorne Street, Cremorne, a 1,490 square metre site that will be developed into a new $80 million commercial office building in a joint venture with the existing landowner, the Zagame Group.
ICON, Kajima and Zagame are set to occupy a significant portion of the building as the headquarters of their respective businesses.
A second deal completed by ICON is the provision of a capital finance solution to Peregrine Projects for its 88 Langridge Street, Collingwood office development.
The new building is currently under construction with Kajima-owned builder Minicon and is set to be delivered in the first quarter of 2022.
The two deals follow recent team appointments at ICON, including the December 2019 appointment of Matthew Bourke as CEO.
Mr Bourke said the two transactions show ICON’s unique ability to fill a gap in the market serving functions as both a developer and capital partner.
“Our debt financing capabilities align with the growing trend away from traditional bank lending,” he said.
Kajima has already invested $130 million in Australian and New Zealand projects where ICON is not the developer.
“Kajima’s operations and structure afford us a three-pillared expertise across multiple facets of property, construction and debt financing, allowing us to broaden our depth of projects,” Mr Bourke commented.
“We are looking forward to having a new home for the ICON and Kajima group while collaborating with our joint venture partners to create an exceptional commercial office building.”
The company’s Australian development division spans residential and commercial with completed projects in Melbourne, Sydney and Canberra.
ICON is no stranger to the Cremorne market, being currently based in the area as well as completing the Wood Marsh-designed 600 Church Street office development in early 2020 that is occupied by Domain.
Mr Bourke detailed that the recent activity is part of a broader plan by Kajima to expand its Australian and New Zealand operations both in the development and finance sectors.
“The expansion of Kajima’s footprint in this market is a natural progression for the company as it continues to look for new opportunities to diversify its global investment portfolio,” he said.
“ICON is on a growth trajectory and we will be looking at bolstering our portfolio and growing our team with larger projects as our relationship with Kajima further evolves.”
“Both of our newly announced projects are in city fringe locations, a market we believe will be supported in the medium-longer term as companies continue to decentralise out of the CBD.”
The 116 Cremorne Street project to be developed by ICON will be designed by Fieldwork.
The site is currently leased to car dealership Lotus and will become part of the company’s portfolio of long-term hold assets.