Mosaic announces $40 million joint venture

Boutique development company Pellegrino Group Australia (PGA) and multi-award winning residential developer Mosaic Property Group have created a joint venture to deliver a $40 million , state-of-the-art commercial and retail building, in Fortitude Valley.As one of only two commercial buildings set for construction in 2018/19 in the sought-after inner-north urban renewal precinct of Brisbane, the six-level A-grade building to be known as The Eminence will offer 3,500sqm of commercial space and 305sqm of retail space.Pellegrino Group Australia Director Paul Pellegrino says both PGA and Mosaic Property Group are committed to building a high-quality boutique building that will be held as a trophy commercial asset and headquarters for both companies.“The Eminence has been specifically designed to provide optimal work-life balance with inspiration taken from co-working spaces to make it a flexible corporate environment for years to come,” Pellegrino said.“It’s a boutique building that’s built to give those businesses with a smaller footprint in Brisbane, bigger exposure – something larger corporate buildings generally can’t offer.”With state-of-the-art design and engineering The Eminence offers a purpose-built sky terrace for informal breakout spaces, outdoor meetings, morning yoga or a quiet lunch, with fantastic city views. The beautifully appointed ground floor foyer will also offer private meeting spaces, lounges and a coffee shop.At its 89 McLachlan Street address, The Eminence will offer the convenience of client entertainment and health and wellness choices at its doorstep being only 150m from James Street.Mosaic Property Group Founder and Managing Director, Brook Monahan said the McLachlan Street site was chosen after an extensive two-year search for an appropriate new headquarters for their company.“We had a very stringent set of criteria for the property that would house our team and meet our requirements well into the future.“The Eminence was the first property that met this criteria as an asset that we wanted to hold longer term,” Mr Monahan said. “While the building is cutting edge in terms of design and technology, it is also surrounded by exceptional amenity being in the heart of the James Street lifestyle precinct.”“At the heart of the inner-north Urban Renewal precinct the area is full of life and energy and has significant room for continued market growth,” Mr Monahan said.“We also felt that the Pellegrino Group was an excellent fit as a JV partner because of their shared values as an organisation.The partnership comes as the Property Council of Australia reported a rise in the vacancy levels within the CBD over the last year, although the study on the office market of Brisbane also reports a decrease in stock in Brisbane fringe suburbs, such as Fortitude Valley.Knight Frank expects to see a steady three per cent decline in Brisbane office vacancy over the next 12 months, due to flight to quality and a white-collar job increase of 12 per cent in the next five years.Mosaic currently operates from a “campus” of four company-owned properties in Latrobe Terrace, Paddington. The new Brisbane headquarters will spearhead their South-East Queensland presence which includes an office on the Sunshine Coast (Maroochydore) and their Gold Coast (Broadbeach) office.Both companies will take up residence in The Eminence with Mosaic Property Group anchoring the building, to occupy 1,700sqm over 2.5 floors and PGA to move their Newstead based office to level four of the building.Construction is set to commence mid-November 2018 with completion estimated for late 2019.Only two levels of the office building remain available.The Eminence was designed by Justin O’Neill of O’Neill Architecture.Leasing agents Gerry Leyden and Michael Skaparis of CBRE and Alex Cameron and Sam Barr of JLL have been involved in the project since its conception and will continue to finalise the lease up of the building.