This article is from the Australian Property Journal archive
THE National Australia Bank is heating up Melbourne’s office market post-GFC, looking for a $400 million second home, according to sources.
Industry sources told Australian Property Journal the NAB has launched a tender for a 52,000 sqm of space in addition to its current existing global headquarters at the Docklands.
This is the largest office space tender since the GFC took hold of the market two years ago.
The NAB is believed to have already shortlisted several options.
Sources said the bank has ruled out APN Property Group and Leighton Properties’ 55,000 sqm office tower project at 567 Collins St. The project stalled during 2008/2009 because it was unable to secure enough tenants to get funding. And in March last year, its main pre-committed tenant law firm Allens Arthur Robinson pulled out of the 13,000 sqm pre-commitment, 12 months after signing the deal.
Although the NAB reportedly knocked back an opportunity to expand its current global HQ in 2006, instead choosing to stay at 500 Bourke St, sources told Australian Property Journal that the bank has set its heart for a second home at Docklands.
The NAB is expected to close the tender by mid this year and hopes to have a new accommodation to move into by 2013.
The move will see the NAB consolidate its offices from several locations including 555 Collins St, 383 King St and 120 Spencer St.
NAB has a 5-year lease for 23,500 sqm at 555 Collins St which is due to expire around 2011/2012 and at the Henkell Brothers owned 383 King St, the bank occupies 12,975 sqm of office space until 2013.
And at the 23-level, 120 Spencer St office tower owned by Global Pacific Group, the bank occupies levels 6 to 11 equating 8,000 sqm.
NAB is staying put at ISPT’s 500 Bourke St, where it has been for over 30 years. In July 2008, the bank signed a 12-year lease to continue occupying the 37-level, 47,000 sqm building as part of a deal which saw ISPT spend $75 million on refurbishments.
As well as 500 Bourke St, NAB occupies 60,000 sqm at GPT owned 800 Bourke St at the Docklands precinct. It was recently valued around $380 million.
NAB shares the precinct with ANZ which spent $580 million for a new 87,000 sqm campus style headquarters.
A move to the Docklands will be another coup for the precinct, which has been the star performer of Melbourne’s office market during the GFC.
According to the Property Council Office Market Report, the Docklands precinct vacancy rates decreased from 3.7% to 2.3%, leasing 89,328 sqm of space in the six months to January 2010.
Australian Property Journal
