This article is from the Australian Property Journal archive
THE Commonwealth Bank has shunned Melbourne's Docklands precinct.
A spokesperson confirmed to Australian Property Journal yesterday, the Bank has put out a tender just over a week ago requiring 25,000 to 30,000 sqm of office space.
“We can confirm that we are in the early stages of reviewing options for office space in Melbourne,” the Bank’s spokesperson said.
But CBA is unlikely to cozy up together with the ANZ Bank and National Australia Bank at Melbourne’s Docklands precinct.
The spokesperson said the Bank is exclusively looking for space within the Melbourne CBD – also ruling out nearby office markets Southbank and St Kilda Road.
CBA’s Melbourne headquarters is currently located at 385 Bourke Street, owned by the Commonwealth Property Office Fund.
Sources said the Bank is looking to relocate offices from 385 Bourke Street when its lease expires in March 2009.
CBA occupies some 21,450 sqm of space at 41 level building and also has some 5,000-6,000 sqm of space on the corner of Elizabeth and Flinders Streets.
Sources said CBA could possibly renegotiate with Commonwealth Property Office Fund to remain at its existing home and expand on its current space requirements.
However, CBA might not be able to expand at 385 Bourke Street because the building is 100% occupied. And the nearest lease expiry, around 5,500 sqm occupied by CPA Australia, is in December 2009.
Industry sources said there are three potential existing office buildings at 222 Exhibition, 171 and 567 Collins Streets, which could suit the Bank’s requirement.
222 Exhibition St is owned Allco Commercial REIT listed on the Singapore Stock Exchange. The property is a 22 level A Grade office tower with 29,918 sqm of space and a 479-bay car park.
There is also Macquarie Office Trust’s new $180 million, 27,000 sqm office tower at the “Paris End” 171 Collins Street.
The Bank could also move into APN Property Group’s 567 Collins Street. The 25-level building can cater for space requirements from 2,000-50,000 sqm.
CBA’s spokesperson told Australian Property Journal that review process is likely to wrap up in the late third or fourth quarter of 2007.
Australian Property Journal
