This article is from the Australian Property Journal archive
PROFESSIONAL services firm, Deloitte, is staying put at Grosvenor Place, by signing a new 12-year lease at 225 George St in the Sydney CBD, where it has been since 1994.
Grosvenor Place is owned by the Commonwealth Property Office Fund, Direct Property Office Fund, Investa Property Group and the Commonwealth Superannuation Corporation.
Deloitte’s current lease was due to expire in November 2013 and has been renewed until December 2023. The new lease also includes an additional four floors of space, increasing its footprint from 12 floors totalling 21,000 sqm to 16 floors totalling 28,000 sqm or 33% of the building.
The firm will occupy the space to be vacated by existing tenants, Nighthawk Radiology Services and JP Morgan by mid 2012.
The lease comes with options to take up more space in the future.
CPA fund manager Charles Moore said as a result of this leasing achievement, the asset’s weighted average lease expiry profile has improved significantly from 3.4 years as at 30 June 2011, to 6.2 years.
“This transaction removes 1.5% of the net property income risk from the 2013 financial year and also solves for 50% of the space that was due to be vacated by J.P. Morgan in June 2012.
“This is a significant deal for the Sydney CBD as it removes a prime contender from the pre-commitment market, reducing the limited number of options available for large space users that are available in the near term,” he added.
Deloitte CFO Matthew Broadfoot said the Sydney commercial market is starting to firm.
“Given Deloitte’s double digit growth, it was essential that we secure our tenancy at the present time so as to be secure against the firming Sydney office market,” Broadfoot concluded.
Australian Property Journal
