This article is from the Australian Property Journal archive
OPTUS has extended its stay at Stockland and AIMS APAC REIT’s 84,914 sqm Macquarie Park office campus, signing a new 12 year lease with a 10 year option.
The deal matches the length of major telco’s tenure to date at 1-5 Lyonpark Rd, and begins from July 2021. As a result of the lease, the building’s weighted average lease expiry will be extended from 2.75 years to 13.6 years.
Located about 15 kilometres north west of the Sydney CBD, the Optus Centre comprises six low rise A grade buildings with 2,100 car parking spaces.
The centre sits over 7.6 hectares and has a book value of approximately $240 million.
Stockland will undertake upgrade works to enhance the facilities in partnership with Optus including delivering end of trip facilities, new access roads, drop-off areas, a pedestrian link from the car park, upgrades to bathrooms and utility infrastructure.
“This further commitment to Macquarie Park is in line with our strategy to grow our workplace and logistics weighting through a strong focus on upgrading existing properties and development opportunities,” Stockland chief executive officer, commercial property, Louise Mason, said.
“We are highly confident in the demand and supply fundamentals for workplace and logistics along the east coast, which is why we’re confident to undertake incremental development to grow our weightings in Sydney, Melbourne and Brisbane.”
Stockland has been selling off retail assets as part of the portfolio reweighting, and recently launched the first stage of its $2 billion, 260 hectare Melbourne Business Park in Truganina alongside Mt Atkinson Holdings.
Mason said the key reason for the continued growth of Macquarie Park is the Macquarie Park Local Environment Plan, which allows for development of campus style office in a more urban environment with access to services and infrastructure.
According to Savills, Macquarie Park had a vacancy rate of 4.8% as at June, the tightest market in Sydney north shore, while A grade net effective rents grew by 3.8%.
Tony D’Addona, Stockland general manager – workplace & logistics, said companies continue to seek efficiencies via consolidation of their operations in campus-style workplaces, utilising larger floor plates which promote more engaging environments for their employees, as well as offer close proximity to retail facilities, child care, transport, infrastructure and residential areas.
Koh Wee Lih, chief executive officer of AIMS APAC REIT Management Limited, as the manager of AA REIT said the new agreement for lease arrangement and asset enhancement initiative will significantly enhance the quality and value of the Optus Centre property in a market currently experiencing limited supply of quality business park assets.
