This article is from the Australian Property Journal archive
DEXUS Australia’s largest office landlord – has struck an agreement to fund, develop and invest in a $1.4 billion 40-level, 75,088 sqm hybrid timber tower that 180 metres will be the world’s tallest of its kind.
Atlassian owns the 8-10 Lee Street property, spanning 3,487 sqm next to Dexus and Fraser’s $2.5 billion Central Place Sydney development, and unveiled the tower design last year. It will incorporate a revamped Railway Square YHA within its lower levels, as well as the heritage Parcels Shed at the YHA that was used for parcel dispatch parcels at Central between 1912 through to the 1980s.
Headed up by homegrown billionaires Mike Cannon-Brookes and Scott Farquhar, Atlassian recently announced its TEAM Anywhere policy that affords its employees the ability to work from home at all times.
Dexus will act as development manager and take responsibility for delivering the project, fund 100% of the project costs during construction, and retain a long-term equity interest in the asset with Atlassian. It said it may also look to introduce third-party capital into the project prior to completion.
The building is targeting 6-star NABERS Energy and 6-star Green Star design ratings. Designed by New York-based SHoP Architects in partnership with Australian firm BVN, the building is focused on occupant wellbeing and will be built from a timber and concrete combination. Each four-storey section to be known as “habitats” and have naturally ventilated areas throughout.
Planning and other government approvals are expected by December, with construction expected to commence in early 2022 and completion early in 2026.
The NSW government hopes the wider tech precinct will attract 25,000 workers and stretch from Central station through to Redfern. Dexus, along with Frasers Property Australia, recently lodged plans with City of Sydney for 130,000 sqm of workspace across two towers at Central Place, rising 35 and 37 levels respectively above the future tech precinct.
“The Atlassian tower is a great example of the future of workplace and is aligned with our purpose of creating spaces where people thrive,” Dexus CEO, Darren Steinberg said.
Ross Du Vernet, Dexus chief investment officer, said, “This acquisition increases the size of our city-shaping development pipeline and provides us with appealing risk-adjusted returns.
“The exciting sustainability outcomes and initiatives championed at this development are consistent with our ambitions and will enable us to leverage this innovation across our broader platform.”
In May, Dexus lodged plans to add nearly 16,000 sqm of space to its 60 Collins Street development in Melbourne, on a corner site that it acquired opposite 80 Collins Street.
