This article is from the Australian Property Journal archive
THE Victorian government is moving to one Melbourne CBD's landmark office buildings, Casselden Place at 2 Lonsdale St, owned by property giant ISPT.
According to industry sources, the state government has leased approximately 11,500 sqm at 2 Lonsdale St, in one of the largest leasing deals in the Melbourne CBD for 2012.
The government will take over the space vacated by the Australian Taxation Office, which is moving to Walker Corporation and Kuok Group’s Collins Square next weekend.
The move to 2 Lonsdale St is part of the state government’s cost saving measures by cutting public sector jobs.
Source said the state government will consolidate from 35 Spring St, which is being converted into a residential apartments complex and AMP Capital Investors’ 55 Collins St.
Those two tenancies represent over 22,000 sqm of space.
Casselden Place is managed by Knight Frank, however the agency declined to comment.
It is believed that the rent was struck at $500 per sqm gross, which is the market standard for the precinct.
Casselden Place is owned by the ISPT Core Fund. The 20-year old landmark Melbourne CBD office building is undergoing a $50 million refurbishment.
The property comprises 61,412 sqm of office space and is home to the Department of Foreign Affairs Australian Electoral Commission; Australian Prudential Regulation Authority; CBUS; HESTA Superannuation Fund; Industry Fund Services & Industry Funds Management and other commonwealth and state government agencies.
The Victorian government lease is one of the largest transactions this year and comes hot on the heels of Victoria Police committing to 289 Spencer St Docklands, Medibank to CBUS Property’s 740 Bourke St and Westpac to Scots Church at 150 Collins St.
There are currently other large tenants in the market for space including Esanda, the Commonwealth Bank, KPMG and Corrs Chambers Westgarth.
Property Review
