Deals have been signed in Melbourne, Brisbane and Adelaide by some of Australia’s largest office landlords to secure major leases on their CBD towers.
In the Melbourne CBD, infrastructure company Jemena has agreed to lease more than 12,000sq m of space at 567 Collins Street. The site is jointly owned by Investa Commercial Property Fund and the listed Investa Office Fund and is being developed by Leighton Properties.
IOF manager Toby Phelps said Jemena’s move to the CBD was part of a “recentralisation” of Melbourne office space, as competitive CBD rents enticed companies to move from the suburbs. Rents in the building range from $550 to $580 per square metre net, according to industry sources.
The tower, which is under construction, will also house the Melbourne offices of Corrs Chambers Westgarth and Leighton Contractors, with the building nearly three-quarters leased. The 50,000sq m building is expected to be completed by August next year.
Investa, meanwhile, has secured conference organiser Informa for its Sydney office building at Darling Harbour’s 347 Kent Street. The tenant took 1366sq m of space at a gross rental of $525 per square metre. The deal was negotiated by CBRE’s Stuart McSorley and Tim Molchanoff and Cadigal Office Leasing’s Shaun Keating.
In Brisbane, accounting firm PricewaterhouseCoopers is moving its head offices to the $500 million 480 Queen Street development in the city’s Golden Triangle. PwC will lease 6900sq m at the tower, which is owned by Dexus Property Group and its wholesale property fund. Grocon is the developer and builder. The building is more than 60 per cent committed despite tough leasing conditions in Brisbane. BHP Billiton and law firm Herbert Smith Freehills are among the tenants.
Dexus executive general manager, office and industrial, Kevin George said the group was confident of securing more tenants before expected completion in February 2016.
In Adelaide, the Department of Immigration and Border Protection has leased about 6000sq m at Kyren Group’s building at 70 Franklin Street.
The lease, which is the city’s largest this year, was negotiated by Nicholas Shinnick of Colliers International.
Original article published at www.theaustralian.com.au by Greg Brown, Property Reporter Sydney, 11/6/2014