UBS pre-commits to Charter Hall’s Chifley South
Charter Hall has secured Swiss financial services giant UBS to the Chifley South tower, earmarked for podium airspace at the north east corner of Chifley Square and Hunter St.
The tenant will relocate from the neighbouring, 29 year old Chifley Tower (also known as 2 Chifley Square, but which will be branded Chifley North once the new building is complete).
Chifley South will contain about 64,654 sqm across 38 floors; its end value is speculated to be about $2 billion.
Following the commitment by UBS and Charter Hall, which plans to relocate its headquarters there too, 16,000 sqm of the area is accounted for.
“UBS has a long history of more than 80 years in the Australian market and the Chifley precinct has been home to us in Sydney for over 15 years,” UBS Australasia joint country head, Nick Hughes, said.
“As the largest tenant at the existing tower at 2 Chifley Sq, we are pleased to be remaining within the Chifley precinct while providing our people with a new workplace that is specifically designed to enable them to grow and thrive,” according to the executive.
Charter Hall Office chief executive officer, Carmel Hourigan, added the deal is evidence of businesses engaging in a flight to quality as they try to bring people back to the city.
“Large corporates across Australia are recognising the value of a state-of-the-art workplace in driving productivity, attracting and retaining talent, ensuring health and wellbeing of their people, and fostering culture,’ she said.
Tower will enhance skyline: Charter Hall
Charter Hall, via its Prime Office Fund and Deep Value Property Fund, equally invested into a half share of the Chifley Tower property in mid-2019; the deal was worth about $900 million (story continues below).
GIC holds the other 50pc (coincidentally this group also recently announced it would base its Australian headquarters there).
The site spreads 6438 sqm – making it the Sydney CBD’s second biggest block.
“This pre-commitment by UBS demonstrates the optimism in the future of the workplace, underpinned by our track record in delivering world class buildings that are tailored to meet the long-term needs of our tenant customers,” Charter Hall managing director and chief executive officer, David Harrison, said.
“Retaining UBS as a tenant customer in the Chifley precinct and securing them as an anchor tenant in the new Chifley South tower is a significant vote of confidence in our proposal and our active partnerships,” he added.
“We are thrilled to continue to work closely with the UBS team to deliver a bespoke new headquarters that will serve their people for many years to come,” according to the executive.
“We also look forward to relocating from our current headquarters to Chifley South which will help us deliver an even more collaborative and innovative space for our people as we continue to grow each year.
“I believe Chifley represents the pre-eminent commercial site in Australian CBD markets, sitting atop the hill of Sydney CBD with expansive views across Sydney’s beautiful parks and harbour.
“It will be enhanced as an icon within the Sydney CBD and will enhance the city’s skyline”.
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