Coles heads to town for HQ
It will be the end of a four decade era in Melbourne office leasing circles with Coles making the surprise decision to quit its long time Hawthorn East National Store Support Centre for one in town.
The group will also be swapping campus style accommodation for high rise – choosing Cbus Property’s 720 Bourke Street, Docklands.
The 30,000 square metre space over 10 floors – to be vacated by Medibank – will house some 5000 staff.
The initial commitment is for 20 years.
Cbus will now fully electrify the building, completed in 2015, with 46,500 sqm over 16 levels, with a distinctive atrium over connecting staircases (pictured, top).
Coles is expected to move there in mid to late 2027.
End of a four decade era
Coles will quit the entire c39,400 sqm at 800 Toorak Road, Hawthorn East – in the pocket of Tooronga – with a dozen six level buildings – which it has occupied since 1986.
Known in office investment circles as Battlestar Galactica, given its prominent use of black glass, the asset occupies 3.67 hectares, with c2250 car parks, almost half in a multi-level garage (story continues below).
Sam Alter’s epc.Pacific developed it and owns half.
In 2014, Charter Hall, on behalf of the Direct Office Fund, bought the balance from Investa Office Fund, outlaying $140.5 million.
Transformational, generational shift for Coles: agent
It is believed Coles would have been presented with significantly valued incentives at 720 Bourke St, with Melbourne’s CBD office vacancy rates at a record high 18 per cent – 4.3pc above the (also high) national average.
Colliers’ Tim Farley, who represented the occupier with Lucy Munday, said “as businesses, technology and our way of working continue to evolve, this move represents an exciting transformational and generational shift that will support the business well into the future with a focus on positive change and better connection for their team”.
That agency also committed Medibank to nearby 693 (also known as 699) Collins St, Docklands, in 2021.
Following that lease deal, developer Lendlease sold the 70,000 sqm office on a fund through basis for $1.2 billion to the National Pension Service Plan of Korea.
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