This article is from the Australian Property Journal archive
ANZ Bank has ended months of speculation by announcing that its new headquarters will be located at Melbourne’s Docklands at Lend Lease’s $1.8 billion Victoria Harbour precinct, as previously foreshadowed in Australian Property Journal more than 12 months ago.
ANZ will partner Lend Lease will develop the $478 million project, which the ANZ will purchase following completion.
In addition, ANZ will spend another $110 million on fitouts.
ANZ said the building will become one of the group’s core Melbourne properties, along with ANZ’s 100 Queen Street, and 75 Dorcas Street, South Melbourne premises.
In 2010, most Melbourne-based ANZ staff will operate from these three core sites, relocating from: 570 Bourke Street, 55 Collins Street, 530 Collins Street, 287 Collins Street, 452 Flinders Street and 85 Spring Street, Melbourne, 570 Church Street, Richmond and 227 Toorak Road, South Yarra.
The Victoria Harbour office development will comprise 87,000 sqm of accommodation including 83,550 sqm of office accommodation, 3,436 sqm of retail and amenities.
The office building is expected to house 5,500 ANZ employees – making it one of the largest single tenancy, CBD commercial office development ever undertaken in Australia.
The building will be located on the new extension of Collins Street and is bounded by the Yarra River and Docklands Park. It is designed as a 5 Star Green Star rated building. The innovative design will provide accommodation over 10 levels and will include childcare facilities, a gymnasium, shops, restaurants and staff amenities.
Under the terms of the agreement, LLD will receive land and development management fees and Bovis Lend Lease will carry out design and construction of the $377 million building and external works.
ANZ’s chief executive John McFarlane said the new development makes strong financial sense, allowing ANZ to consolidate many of its Melbourne properties, resulting in efficiency gains, more effective use of space and greater collaboration between ANZ’s businesses and its people.
As part of its Melbourne property strategy, ANZ will retain its other principal offices at 100 Queen Street, Melbourne and 75 Dorcas Street, South Melbourne.
ANZ will be the second bank to call Lend Lease’s Victoria Harbour Home including the National Australia Bank.
Meanwhile, property sources told Australian Property Journal that unlike the NAB, ANZ’s move is flawed.
Property sources estimate that ANZ will pay in excess of $600 per sqm for the building, including a $320 per sqm base lease; $120 million upfront fitout costs which will contribute $180 per sqm plus $100 per sqm in outgoings.
Compared to the NAB which struck a deal of $200 per sqm for its headquarters at Victoria Harbour.
Lend Lease said the project will add over $350 million worth of projects either under construction or about to commence at Victoria Harbour.
These include two office buildings on Bourke Street, two residential apartment buildings, a Safeway supermarket and approximately 50 specialty retail outlets and restaurants. Total construction costs is $377 million.
Site work will commence late 2006 and is due for completion in the second half of 2009.
By Adam Parsons and Nelson Yap
