This article is from the Australian Property Journal archive
THE Australian Taxation Office is discreetly on the market for new office space to replace its aging residences across Australia.
The ATO has already committed to around $500 million of new office space in Melbourne CBD, Adelaide CBD and Albury.
However, the department is just getting started as it has been revealed that the ATO is conducting further audits on other locations.
The ATO told Australian Property Journal that it is currently undertaking an overarching program and a multi-review for office spaces across Australia.
The program is part of the ATO’s requirements to relocate to sustainability infrastructure for the next 15-20 years.
As part of the ATO’s sustainability policy, it is looking for new office space boasting 4.5 star NABERS Energy Rating and 5 star Green Star rating.
Whilst the ATO did not reveal all the locations it is reviewing, Australian Property Journal has learnt that the ATO is now looking for new space in Penrith, New South Wales and Geelong, Victoria.
Currently it leases a nine level office building at 121-125 Henry St, Penrith owned by the Westpac Diversified Property Fund. Custom built for the ATO in the early 1990s, the 15,555 sqm building is leased to department until 2011.
The property was valued at the peak of the market at $52 million in December 2007, it is currently valued at around $37 million as at June 2009.
In Geelong, the ATO leases 5,740 sqm at a Government Property Trust owned complex. The six level building located at Brougham Street and Corio Street is also leased to the department until July 2011. The complex was developed in the late 1980s.
It is unclear whether ATO will negotiate for the owners to retrofit the buildings or look for new space. The ATO told Australian Property Journal that it is keeping its options open.
Earlier this month the ATO committed to a $50 million, 15 year lease for 10,000 sqm for a new custom built complex on Albury City’s Volt Lane car park, located in the heart of the CBD. The development is a joint venture between Canberra property companies Le Hunte Properties and Doma Group.
The ATO’s new building is designed to meet a 4.5 star NABERS Energy Rating and 5 star Green Star rating.
In March, it committed to a new $200 million office building in the Adelaide CBD. The ATO has leased 30,000 sqm of space at the Aspen Group development for an initial 15 year term. The tower, which will be the largest office development in Adelaide, has also been designed to achieve a 5 star Green Star and NABERS ratings.
And finally in February this year, it signed a deal at Walker Corporations $250 million Quattro development at Melbourne’s Docklands.
Australian Property Journal
