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Telecommunications giant Telstra has signed the biggest CBD office lease deal for the year so far, making the unusual move to lease more than 3300 square metres of third-level retail space at Grocon’s QV development, which it will convert to offices.
The space will be used to accommodate staff for Telstra’s information resource business Sensis. It was part of AFL World’s flagship CBD store, which occupied three levels on the corner of Londsale Street and Red Cape Lane.
Sensis already occupies 18,400 square metres of office space directly above AFL World’s tenancy in a building it brands as 222 Lonsdale Street. Its latest lease brings Sensis’ occupancy in the building to 21,700 square metres, and solves the dilemma of finding alternative A-grade offices in an undersupplied market.
Elsewhere in the $600 million QV mixed use project, office tenants including mining giant BHP Billiton, and consulting firms Deloittes are also in need of more space. It was reported in the Capital Gain column of The Age last year that both tenants are eyeing about 5700 square metres of QV space currently occupied by professional services group Gutteridge Haskins and Davey (GHD), the fourth biggest tenant in the complex.
It has been speculated that GHD, which also needs more office space, is looking for a bigger premises, possibly in Docklands.
“Several of the existing QV tenants expressed interest in the (AFL World) space due to rapid growth of their businesses,” Grocon chief executive officer Daniel Grollo told The Age. “It was a good outcome for Sensis and QV, as the space will blend into the existing offices and provide for the growing needs of the successful business.”
“It’s great to see they’re happy with QV Property Management and keen to stay in this very central location,” he added.
The deal is the latest in a string for Grocon.
Late last year, the London-based Match Bar Group announced it signed a ten year lease for 600 square metres of upper level retail space at QV, which it will develop into a trendy restaurant and bar with the capacity to seat between 250 and 300 people. The retail space had sat vacant since QV opened its doors in late 2003.
Hugo Boss Orange, the leisurewear arm of Hugo Boss also recently leased about 140 square metres of retail space at ground level, while another fashion retailer Zimmerman has committed to about 110 square metres at Albert Coates Lane, on the ground floor.
Telstra will convert and fit out the outgoing AFL World retail premises in the next few months, and it is expected Sensis will occupy the building before the middle of the year. Telstra was represented by property services group The United Group Limited.
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