This article is from the Australian Property Journal archive
AUSTRALAND has confirmed that the Commonwealth Bank has signed a major lease at 357 Collins St Melbourne, as previously reported by PropertyReview.
The CBA will lease approximately 8,500 sqm which represents approximately one third of the total office NLA in the building, occupying levels 6 to 10 of the building for an initial 10 year term (with further option periods) at a net rental of $385 per sqm.
The lease will commence in October 2012.
Australand’s commercial and industrial executive general manager Sean McMahon was pleased to have secured the bank at quite an early stage of the project’s repositioning.
“The building is ideally located within the heart of the Melbourne CBD and is well positioned to capitalise on the favorable leasing conditions forecast for the market over 2011 and 2012, when A-grade vacancies are anticipated to fall to less than 5%,” he added.
The new tenants will bring life back into the famously dubbed “ghost” office building, which has remained vacant for over a decade. Australand bought the property last year from a Chinese investor Maxicity for $45 million.
Commercial development general manager Chamoun Malki said in addition to the CBA, the building is attracting considerable interest from a number of potential tenants.
“Australand is also pleased to confirm that we have executed Heads of Agreement for approximately 50% of the retail space at 357 Collins Street, equating to around 850 sqm, and we continue to field strong enquiry on the remaining office and retail tenancies,” he continued.
CBA head of corporate services Suzanne Young said the property reflects the bank’s commitment to maintaining and growing its presence in Melbourne and Victoria.
Construction is well underway, with works due to be complete in the first half of 2012. Upon completion, 357 Collins St will comprise approximately 30,000 sqm of space, targeting a 5 star NABERS Energy rating.
In addition, the building will comprise around 1,800 sqm of prime retail space and basement carparking, bike facilities and shower amenities.
Australian Property Journal
