Atlassian will retain a stake in its next headquarters, construction of which will start next year.
As speculated 10 months ago, the 40-level skyscraper in Haymarket, a gateway to the Sydney CBD, will be delivered by Dexus which will hold a minimum 50 per cent stake.
A third party is expected to take the balance.
About 80pc (60,000 square metres) of the 75,088 sqm complex will contain offices.
Lower levels will be configured with retail and a 480-bed hostel to be occupied by YHA, which presently occupies the brick former Inwards Parcels Shed at the address, which will be turned into a public space.
Dexus said the asset will have an end value of $1.4 billion; construction is scheduled for completion in 2026.
The acquisition price is understood to imply a 4.2-4.5pc capitalisation rate.
Over a year in the making
Dexus beat ISPT as partner for the project last September – three months after Atlassian unveiled it.
Built will construct it; this group won the tender over Multiplex and Lendlease.
The tower’s skeleton will be steel and glass – both materials which will be used to generate building electricity.
It will also utilise concrete and timber.
The SHoP Architects and BVN design includes four level sections, to be known as ‘habitats’.
Atlassian has committed to an initial 15-year lease.
The occupier will relocate from 341 George Street, in the CBD.
“The Atlassian tower is a great example of the future of workplace and is aligned with our purpose of creating spaces where people thrive,” Dexus chief executive officer, Darren Steinberg, said today (story continues below).
Ross Du Vernet, the investor’s chief investment officer, added “this acquisition increases the size of our city shaping development pipeline and provides us with appealing risk adjusted returns”.
In the area
The skyscraper is earmarked for 8-10 Lee St, a 3487 sqm site Atlassian acquired, then obtained the permit to replace.
The address forms part of a 24 hectare precinct dubbed Tech Central, extending from the northern end of Central station to Cleveland St, Redfern, at the south.
It is anticipated about 250,000 sqm of commercial product will be constructed there.
To allow for this, the state government last August increased the area’s building height limit – from 35m to 206m.
Next door to the Atlassian office, Dexus Office Partnership (of which Dexus owns half), with Frasers Property Australia, is seeking to build a $2.5m mixed-use complex with 130,000 sqm contained in two commercial towers, of 37 and 39 floors, linked by a sandstone building with retail and a food hall.
Near to this, Toga has announced plans to replace its Adina hotel with a major building – with offices, retail and 250 accommodation rooms – expected to be taller than 8-10 Lee St.
The precinct is about a kilometre south of Hyde Park.
The state government last year said it expects about 25,000 people to work within Tech Central by 2026.
About 4000 would be at the Atlassian office.
Central station is Australia’s biggest interchange.
The train station is walking distance to Surry Hills, Chippendale, Darling Harbour and Eveleigh – the latter where Commonwealth Bank of Australia recently opened its headquarters.