Government organisation signs major office lease
A recently formed federal government organisation has signed a major office rental agreement in Melbourne’s CBD.
The 12 year deal is for 7600 square metres – levels 24-27, 130 Lonsdale Street – a $700 million tower under construction, part of Charter Hall’s $1.2 billion Wesley Place project.
With the agreement, the tower is more than three quarters full.
Over 35 levels, with 60,000 sqm of Premium grade space, the building also includes a wellness centre, business hub and concierge service, as well as “one of the largest end-of-trip facilities in Melbourne”.
Another new office is earmarked to rise 22 storeys at 140 Lonsdale St, while an existing 29-level building at 150 Lonsdale Street is being renovated as part of Wesley Place.
The project will also include retail and public spaces built around the c1858 heritage protected bluestone Wesley Uniting Church.
Charter Hall Prime Office Fund (CPOF) manager Matthew Brown said “welcoming the tenant to the Wesley Place development is a great milestone and demonstrates the strong leasing momentum we have been able to create with approximately 78 per cent of the asset secured”.
“Upon completion, Wesley Place will further enhance CPOF’s portfolio quality and total return metrics and deliver our Fund Investors a coveted new Premium grade office building in the tightly held Melbourne CBD core office precinct,” he added (story continues below).
“This new lease demonstrates our approach to securing significant tenant pre-commitments to de-risk the approximately $1.3b of committed projects that we have underway nationally within our office funds management platform,” according to the executive.
“The depth of our internal development capabilities, with experienced teams based in each major capital city means that we are able to collaborate with our tenant customers to deliver great workspace experiences as well as create institutional quality investment opportunities in the office sector”.
Since marketing of Wesley Place office space commenced last year, Vanguard committed to 10,528 sqm, Cbus Super leased 9,201 sqm and Telstra agreed to rent 3,344 sqm.
The Uniting Church in Australia – which sold the 7445 sqm leasehold site to Charter Hall in 2016 – will also occupy.
Completion is scheduled mid-2020.
Tim Farley, National Director of Colliers International’s Tenant Advisory department represented the occupier.
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