The Department of Defence has signed a major Sydney CBD office rental agreement.
The federal government arm has committed to 18,000 square metres, or 64 per cent, at the recently refurbished 310-320 Pitt Street.
Singapore based ARA Capital, backed by Straits Real Estate, is the landlord, having paid Propertylink $275 million for the 28 storey asset in 2017.
Telstra was the major occupier until last year; the building was then known as Telstra Plaza.
The asset has the potential to make way for a substantially taller tower – the zoning allows for a structure rising about 235 metres.
Defence upgrades in the pocket
The department is presently based at the nearby Defence Plaza (270 Pitt St) owned by ISPT and held in the Core Fund (story continues below).
“This was an excellent result for both the tenant and the landlord,” JLL senior director, Office Leasing, Alex Wong, who marketed 320 Pitt St, as it is known, with Justin Hayes and Will Hamilton said.
“The quality of the refurbishment of the newly renovated…tower, and the enhanced building services and amenity were particularly attractive to the Department of Defence,” he added.
“With post pandemic supply tightening in Sydney’s CBD, businesses are seeking the very best work environments…to encourage people back into the workplace,” according to the executive.
“It’s particularly emblematic of the increased demand we are seeing for this location, driven by tenants relocating from both within and outside the Sydney CBD market.
“The desirability and connectivity of the precinct will be further enhanced by the opening of the new Pitt St Metro station, with completion expected in 2024”.
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