This article is from the Australian Property Journal archive
MULTINATIONAL financial services giant Mastercard has leased 12,000 sqm in Sydney’s St Leonards for one of its five global tech hubs, and will also consolidate its operations in the CBD, Rozelle, and North Sydney, prompted by the worldwide evolution in fintech.
Cadigal’s Marcus Pratley negotiated the 10-year lease within the A-grade 72 Christie Street building on behalf of Anton Real Estate Partners. Colliers International also marketed the property, while Mastercard was represented by Rob Johnston of Cushman & Wakefield.
Mastercard revealed late last year that it was looking to bring together its 560 Sydney-based staff and establish the only “tech hub and innovation centre” in the southern hemisphere in St Leonards, but the location was undisclosed.
The move is part of its strategy to move beyond payments, “as rapid urbanization and new technologies foster the shift to mobile, the proliferation of big data, and a growing demand for cyber security,” Richard Wormald, division president of Mastercard Australasia said.
“Over the past five years, Mastercard has made important acquisitions in technology and services that have helped it gain momentum towards its vision of becoming an innovative technology and services leader.”
Half of its 800 staff across Australia are software engineers.
The 72 Christie Street building has floorplates of more than 1,500 sqm, eight levels of office space, an atrium lobby and interlinking stairs. It is located close to the Forum retail precinct and St Leonards train station, while the nearby Crow’s Nest Metro station is due for completion in 2024.
“Mastercard was seeking a new solution to their premises in Rozelle and North Sydney with a focus on staff amenity and public transport. Once they inspected 72 Christie Street the idea of having control of the entire building and bringing everyone together to form an Australian headquarters started to gain traction,” Pratley said.
He said the property was very well received in the market and there was a number of other large corporates looking at the building in addition to Mastercard, and added that supply on the North Shore remains extremely tight, particularly for tenants wanting 2,000 sqm-plus.
The area is home to a number of notable tenants, including Ramsay Healthcare, Toyota, Verizon, APN, IBM, Cisco, Campari, and Coca-Cola just to name a few.
Mastercard are currently finalising their fit-out and are expected to take occupation during this quarter.
The Goldman Sachs-backed Anton Capital and paid $76 million to acquire 72 Christie street – formerly the Westpac Technology Centre – last year alongside Proprium Capital Partners in an off-market deal at an initial yield of 8.5%.
It was purchased a few months before the existing single tenant’s leased expired midway expired in the middle of the year.
Australian Property Journal
