NBN Co to Have Neighbours in Luxury Melbourne Skyscraper

STAFF of the Federal Government’s divisive $43 billion National Broadband Network program – which earlier this year leased luxury offices in one of Melbourne’s few “Premium” grade office buildings – will soon have new neighbours.

ME Bank and Allianz Insurance have leased a combined 16,439 square metres at the landmark Melbourne Central tower, reportedly paying a rental of between $400 and $420 per square metre, per annum.

NBN Co is understood to be paying more than $500 per square, per annum for its space, in a deal reported by BusinessDay, earlier this year.

Meanwhile, opposite the Flagstaff Gardens, the Royal Melbourne Institute of Technology is believed to be paying between $350 and $400 per square metre, per annum, to occupy 1000 square metres at the south tower of 485 La Trobe Street.

At 675 Victoria Street, at the suburb border of Abbotsford and Richmond, the National Association of Testing Authorities has signed a relatively large lease for the suburbs – for 1750 square metres, at 675 Victoria Street.

NATA, which will move from North Melbourne, is believed to be paying about $330 per square metre, per annum to occupy the space.

The office building was once owned by Becton, which sold it – and two other low-rise offices to apartment developer Hamton, during the economic downturn in 2008.

Hamton onsold the 675 Victoria Street office to Hooker Cockram for about $12 million late last year.

Hamton is proposing a medium density apartment village on the balance of the site, which is also the suburb border of Kew and Hawthorn. All three properties hug a bend of the Yarra River.

Savills director Phil Cullity negotiated the RMIT and NATA leases, but declined to comment when contacted.