This article is from the Australian Property Journal archive
THE Australian Taxation Office has signed a major deal to anchor Brisbane’s newest office tower, 55 Elizabeth St, in what is one of the largest pre-commitments in the city.
The ATO has been in the market since last year looking for space and had put out a requirement for 18,500 sqm. It has signed a 15-year lease with two five year options for 12,000 sqm of space in the new 15-level building.
When completed in May 2013, the building will comprise a total lettable area of 19,000 sqm and 50 car spaces as well as 500 sqm of retail on the ground floor.
The ATO will pay approximately $12 million in rents per annum based on the current market rate of $650 per sqm to $700 per sqm.
The Brisbane ATO deal will soothe Grocon’s unsuccessful bid in Melbourne last year.
After it was widely reportedly that Grocon was favoured by the ATO, Lang Walker emerged as the preferred bidder.
Walker and Quok Group’s $750 million Docklands development, Quattro, signed the ATO to anchor the 16-storey 38,000 sqm tower at 735 Collins St. The move will see the ATO consolidate its accommodation across five locations in the Melbourne CBD into one complex.
But Grocon has moved on beyond Melbourne, and it is seriously cashed up right now after pocketing a cool $800 million from the sale of the AXA HQ at 750 Collins St Melbourne, Media House at 655 Collins St Melbourne, and the QV Building at Lonsdale St to the Commonwealth Property Office Fund last year.
The $180 million building is Grocon’s first Brisbane CBD development, it bought the site last year for $24 million. Grocon is finalising plans for the Trilogy site.
Australian Property Journal
