This article is from the Australian Property Journal archive
DEVELOPER John Beville has secured the federal government's Fair Work Building and Construction on a long-term lease at 509 St Kilda Rd.
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:”;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:”Times New Roman”,”serif”;
mso-fareast-language:EN-US;}
Colliers International`s office leasing director Ben McKendry negotiated the lease for 1,649 sqm. The rent was not disclosed.
However, industry sources estimated that rents in the building are in excess of $320 per sqm net.
FWBC will move into the space previously occupied by the National Australia Bank.
McKendry said the deal is one of the largest St Kilda Rd backfill leasing campaigns in recent years.
The transaction is a coup for Beville who bought the property from Calibre Capital in October last year for $90 million.
Colliers has leased close to 13,000 sqm of space at 509 St Kilda Rd, including to AIA Australia 8,391 sqm; Australia Post 427 sqm; Webjet 1,670 sqm; and BJS Insurance 750 sqm.
“All of these tenants have come from within a 500m radius of 509 St Kilda Rd, demonstrating ongoing demand from tenants currently within the St Kilda Rd market to upgrade their office accommodation and stay within the market,” McKendry said.
Australian Property Journal
