This article is from the Australian Property Journal archive
CROMWELL has secured a major leasing coup, signing Origin Energy to the vacant office tower at 321 Exhibition Street Melbourne.
The office building previously tenanted by Australia Post until last year after it signed a $150 million deal in March 2007 to move to the Southern Cross West Tower.
Prior to the departure, Australia Post had occupied the property for 20 years.
Origin Energy has signed an agreement to lease 78% at 321 Exhibition St. The 10-year lease covering 23,953 sqm will take effect from 1 August 2011 following a major refurbishment of the building which is currently underway.
The building will be refurbished over the next 12 months at a cost of approximately $32 million, including approximately $7 million in interest and holding costs. Cromwell recently finalised a new $80 million, 3-year debt facility with a major Australian bank to fund the acquisition of the building from the unlisted, Cromwell Property Fund.
Cromwell CEO Paul Weightman said the agreement to lease would further bolster the weighted average lease term and tenant profile of the group’s property portfolio.
Cromwell will announce its full year results on August 19.
Australian Property Journal
