Charter Hall’s 130 Lonsdale Street filled 10 months prior to completion following AustralianSuper lease

EXCLUSIVE

AustralianSuper – the country’s largest industry superannuation fund – has signed a significant 16,200 square metre lease deal within a Charter Hall office under construction at 130 Lonsdale Street.

With this commitment, the 35-level, 60,000 sqm premium-grade commercial building will be fully occupied when it opens in 10 months.

AustralianSuper has rented skyrise floors within the tower, part of the $1.2 billion Wesley Place project. Wesley Place will be retained by the Charter Hall Prime Office Fund (CPOF) – which is worth $5.6 billion.

AustralianSuper is currently based elsewhere in the Melbourne CBD at ISPT’s contemporary 50 Lonsdale Street, an office previously known as Urban Workshop.

130 Lonsdale Street is part of the $1.2 billion Wesley Place development.

“Leasing 100 per cent of the office space at 130 Lonsdale Street some 10 months ahead of practical completion demonstrates the fund’s ability to deliver enhanced returns to investors through the successful execution of its strategy to develop core assets,” CPOF fund manager, Matthew Brown, said. “The depth of our development capabilities, with experienced teams based in each major capital city, means we collaborate with our tenant customers to deliver them great workplace solutions”.

“At completion, Wesley Place will further enhance CPOF’s existing high-quality office portfolio and deliver sustainable income returns for investors from long-term leases and quality tenant covenants.”

Stuart Colquhoun from JLL represented Charter Hall, while Peter Birrell from Corporate Real Estate Advisory acted for AustralianSuper.

Charter Hall managing director and CEO, David Harrison – formerly one of the country’s most successful commercial real estate agents – said “we are pleased to welcome yet another preeminent super fund and high calibre tenant customer to our portfolio, with AustralianSuper worth $165 billion in member assets and home to 2.3 million members”.

“This follows earlier commitments from Telstra Super and Cbus Super at Wesley Place, as well as a 17,200 square metres commitment from Q Super at our flagship Brisbane Square tower. The Group’s total premium office space occupied by Australian superannuation funds is now over 50,000 square metres.”

The building will rise beside a bluestone church.

Last December we reported that the newly formed Australian Financial Complaints Authority signed on for 7600 sqm at 130 Lonsdale Street joining other occupiers Vanguard and the Uniting Church.

Charter Hall is building Wesley Place on a 1.1 hectare site it acquired in 2016 from the Uniting Church via a long-term rental agreement.

Wesley Place will include two more major commercial buildings – 140 Lonsdale Street and 150 Lonsdale Street.

All up the complex will contain 110,000 sqm of office area.

Wesley Place contributes to Charter Hall’s development pipeline value of $7 billion.

The Sydney-based funds manager controls a national portfolio of 820 properties estimated to be worth about $30.2 billion.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco