This article is from the Australian Property Journal archive
TECH giant Google has purchased the Seven Network site in Sydney’s Pyrmont for a figure believed to be around $150 million, adding to its footprint in the city-fringe tech-hub.
The 38-42 Pirrama Road property in the Darling Island precinct is across from the workplace6 building at 48 Pirrama Road that Google currently occupies, and Channel 7 is moving its head office to Redfern’s Australian Technology Park later this year.
Google will be taking up all of the 22,000 sqm 1 Darling Island Road building once Fairfax Media vacates. Fairfax is still looking for new offices, having assigned its remaining 9,000 sqm to Google earlier this year following an agreement several years ago. The media group had initially signed a lease for the building until 2027.
Chinese-backed vendor Aqualand acquired 38-42 Pirrama Road as part of the REVY site in 2015 for $180 million, from co-owners that included Seven Group, Citta Property Group and Barana Group.
The latest deal is marks yet another chapter in Google’s search for a long-term Australian headquarters. It has been speculated the Google was keen on three office towers at Central Station, which are owned by Rail Corporation and are set to be upgraded as part of state government works that also include a $950 million revitalisation of Central Station and retail area surrounding it.
In April, the New South Wales government rejected an unsolicited proposal from developer Mirvac to build a commercial and culture precinct on a Transport for NSW-owned site next to old rail yards in Eveleigh, which would be anchored by the tech giant.
The government rejected Mirvac’s proposal on the grounds that it preferred the site to be developed via a competitive open process.
Mirvac’s plans included retail, office, residential and arts and culture spaces, an upgrade of Redfern station and integrated mixed-use development around it, and public space.
In April last year, Google backed out of plans to take up the revitalised White Bay power station in the inner-western suburb of Rozelle for its headquarter, citing a lack of public transport upgrades provided by the state government.
White Bay is part of a 95-hectare urban renewal project announced by former Premier Mike Baird in 2015,with intentions to create a Silicon Valley-style tech hub. Those were effectively thwarted by Google’s decision to look elsewhere, and a key Glebe Island component of the area is now slated for a 13,000 sqm storage and distribution facility of bulk construction materials.
Australian Property Journal
