Dexus today announced it has secured Herbert Smith Freehills as a major tenant at its 80 Collins Street South Tower, a Premium-grade office skyscraper under construction and due for completion in mid-2020.
HSF has committed to 10,300 square metres across eight floors (levels 21-28) for a 12-year term commencing on July 1, 2021. It is speculated to be paying annual rent in excess of $800 per square metre for the area.
The law firm will relocate from another Premium-quality office, the landmark 101 Collins Street, across the road.
Dexus, with Dexus Wholesale Property Fund, only acquired the incomplete 35-level 80 Collins Street South Tower five months ago.
The asset formed part of a $1.476 billion portfolio which also included a 255-room NEXT hotel, retail podium with 21 shops, and the 47-storey former Nauru House building, which is now known as the 80 Collins Street North Tower.
As part of its May purchase, Dexus seized control of the project’s leasing functions from the vendor, QIC.
Other tenants set to move into 80 Collins Street South Tower include Macquarie Bank, McKinsey & Company and DLA Piper.
Dexus said in this statement that the HSF lease increases the South Tower’s occupancy from 63 per cent to 89 per cent “with significant interest on the remaining space”.
“The North Tower is currently 99.4 per cent occupied with ongoing discussions progressing in relation to the space requirements of existing customers coming up for expiry,” Dexus said.
The 80 Collins Street portfolio is at the north west corner of Exhibition Street.
Last September, Dexus spent $230 million to buy two neighbouring offices 52 and 60 Collins Street, at the north east corner of this intersection, where it is proposing to build another landmark office, also expected to be Premium-grade quality.
Dexus head of Office Leasing, Chris Hynes, said the ‘Paris [east] end’ of Collins Street is “where our customers want to be”.
HSF Melbourne managing partner, Rodd Levy, said the firm is “excited to be moving to a state-of-the-art building, which will support…plans and aspirations for our staff and clients.”
“We believe that 80 Collins Street will enable us to promote greater collaboration and innovation.
“All of this aligns with our vision to be a world class professional services firm.”
Development of 80 Collins Street South Tower “topped out” in August.