This article is from the Australian Property Journal archive
THE “flight to quality” trend in Sydney’s office market continues apace, with a major commitment from the parent company of Calvin Klein and Tommy Hilfiger taking Brookfield and Investa Gateway Office (IGO) Fund’s recently redeveloped 388 George Street tower to full occupancy.
PVH Brands, one of the world’s largest global lifestyle companies, has leased 5,000 sqm from levels eight to 11 on a seven-year term for its new Australian head office. It joins Aware Super, QBE Insurance, CoreLogic, ECP Asset Management, Johnson Partners, Chapman Eastway, Drake International and The Commons in the 28-level tower.
Other leases include family-owned fashion, and fragrance business Puig, with brands including Carolina Herrera, Byredo, Charlotte Tilbury and Comme des Garçons, taking 650 sqm on Level 5 on a 4.25-year term, online learning and education company Go1 leasing 435 sqm level five for 4.5 years, and major retail broker OMG (Openmarkets), committing to a 4.5-year lease over 500 sqm on level 15.
“We are delighted to achieve 100% occupancy at 388 George Street which has been a fantastic example of transforming an existing asset to a premier asset through a well-considered redevelopment,” Danny Poljak, president of Brookfield Properties, said:
“The deals struck reflect the ongoing ‘flight to quality’ trend in the market and are testimony to the ongoing demand for high-quality, well-located space within the Sydney CBD.”
Most organisations relocating their operations are moving into higher quality office buildings, according to JLL, and this is being reflected in the prime and secondary grade net absorption results across the country.
Clifford Leeson, investment manager for IGO said the repositioning of 388 George Street created a “landmark sought-after luxury and commercial precinct”.
“We are delighted to welcome PVH Brands to its new Australian head office, right in the heart of the precinct.”
388 George Street was recently awarded a Well Core Gold Rating, and has also achieved a 5 Star NABERS Energy rating, and is targeting a 5.0 Star NABERS Indoor Environment Quality rating.
Locali by Romeo’s is operating its signature supermarket and food hall concept beneath the tower, while other retailers in the precinct include luxury pair Cartier and Bally, with the Esca Group opening a Japanese rooftop bar and restaurant in the podium building next year, and premier watch retailer Swiss Concept opening on George Street also next year.
