Serco sub-lets Essendon Fields office from The Good Guys

Landlords Beck Corporation and Linfox announced the Serco deal at 15 Vaughan Street, Essendon Fields, in early May. By the middle of that month, some 400 staff were expected to be based there.

Serco Australia has rented the Essendon Fields office vacated last year by The Good Guys, which is now based at Southgate after merging with JB Hi Fi.

The sub-let deal will see out the former tenant’s head lease, set to expire in 2023.

Serco Australia has taken over The Good Guys’ lease at 15 Vaughan Street, Essendon Fields.

The landlords, Beck Corporation and Linfox, announced the British labour hire company was moving in three months ago.

Pandemic-led deal

Serco needed the space urgently to accommodate some of 1500 call centre workers it put on to deal with COVID-19 related queries for various state and federal government departments including Australian Taxation Office, Centrelink and Medicare and programs like JobKeeper and JobSeeker.

Serco Australia is also renting 201 car parks at 15 Vaughan Street, Essendon Fields.

About 400 people were expected to be based at 15 Vaughan Street, Essendon Fields, by mid-May.

Colliers International’s Kevin Tutty and Travis Myerscough with JLL’s Joshua Tebb and Tim Sugar secured Serco for The Good Guys, which was represented by Charter Keck Cramer’s Steve Kingston, Lachie Devine and Ed Fanning.

The deal includes 6296 square metres of A-grade area and 211 car parks.

It is costing $2.3 million per annum net.

The lease term is 32 months.

“It was a pleasure to assist JB Hi Fi and The Good Guys in the successful subleasing/rent recovery transaction management campaign,” a CKC statement said.

“This has resulted in a substantial rent recovery for our client’s remaining…term” (story continues below).

The Essendon Fields office is part of a master planned commercial community also with a shopping centre (above) and hotel (below).

CKC also placed the occupiers at ARA Asset Management’s 60 City Road, Southgate, in 2018.

Melbourne’s biggest directly brokered leasing deal this year: agents

Mr Tebb and Mr Sugar said the Serco deal is Melbourne’s largest directly brokered leasing transaction this year.

Hyatt Place at Essendon Fields.

“Essendon Fields features well established road and transport options as well as strong amenity including childcare facilities, medical centre, supermarkets and a wide variety of restaurants and walking tracks providing staff with a healthy way to commute to work and exercise during the course of the day,” the executives added.

The Good Guys’ sub-lease space was turn-key, with a contemporary fit out, open-plan workstations, closed offices and substantial board and meeting rooms.

The building also includes floor-to-ceiling windows.

Essendon Fields is about 11 kilometres north west of town and serviced by the #59 tram from Elizabeth St.

“The property is well designed and positioned with unbeatable amenity at a very reasonable rental cost when compared to the CBD,” Mr Sugar said.

Globally Serco’s workforce is put at 50,000; more than 20 per cent is throughout Asia Pacific.

It has operated in Australia for more than 30 years.

Elsewhere in Melbourne it rents offices at Box Hill, the CBD and St Kilda Rd.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco