I think Im gonna be sick

[christarrant]

Stockland wins Optus lease in one of Australia's largest commercial leasing deals
Emily Pettafor, November 17, 2004

PROPERTY developer Stockland has lured Optus away from rival Mirvac Group and has agreed to build a $350 million headquarters for the telecommunications firm in Sydney's suburban North Ryde.

The Optus deal is one of the largest commercial leasing deals in Australia and was highly sought after.

Optus will move 6500 staff to the campus-style 84,000sqm building in July 2007.

Stockland pipped Mirvac, which counts Optus as a tenant at its 101 Miller St property in North Sydney, to the 15-year lease deal.

Mirvac had put forward another campus-style development, also in North Ryde, on land owned by Macquarie University. But analysts said Optus might have been burnt by the $14 million rental bonus Mirvac extracted from the telco last year. Optus had been deliberating about moving out of 101 Miller, but left its run too late and was forced to exercise a four-year option at Mirvac's North Sydney tower.

Rents in North Sydney had tumbled since a decade earlier, when the original leasing deal was done, and Optus had to pay $485 per sqm for its 36,000sqm. Investment bank UBS estimated the amount was 25 per above the going market rate and would cost Optus $14 million over four years.

Mirvac yesterday confirmed that Optus would pay $485 per sqm until it quit the building in October, 2007. Mirvac managing director Robert Hamilton said Optus's relocation would give the landlord a chance to "re-weight" the building's tenancy mix. "To have a single tenant is not our long-term preference as it limits rental growth," he said.

[Grollo]

How dissapointing, The Rialto has 84,000 square metres of office space :-( I hope the Victorian Government won't let Telstra move out of the Melbourne CBD when it is privatised.

[CULWULLA]

sounds like North Ryde will be "office park capital of the world"!!!

[Grollo]

well "office park capital of Australia". Nearly every city in America has massive office parks, which is part of the reason why so many downtowns in The USA have so many parking lots and ours don't.

Silicon Valley has more office space in office parks than than the total amount of office space in the Sydney CBD!!!

[christarrant]

so what is there-

Melb -
NAB moved to Docklands
Shell moving to somewhere in the burbs

Syd-
Optus moving to Ryde
Nestle moving to Rohdes

Anyone BIG moving FROM the burbs TO the CBD ?

[finn]

Woolworths is currently building their new HQ at Norwest Business Park in the Hills District...that is about 92,000 sqm, or so I've heard! Most of their head office stuff is in the CBD at the moment, plus other admin spread throughout the metro, all being consolidated in the one location.

I am currently working on stuff to do with Sydney Water's move from the CBD to Parramatta CBD, where they will occupy 24,000sqm in a new building.

At least North Ryde/Macquarie Park has the new train line under construction, so shortly after Optus moves into their new HQ that will be all finished and only a 5-10min walk from the HQ. Although, also gotta realise that the new Optus HQ will include 2100 parking spaces.

[tayser]

I'm on a short contract with an outsourcing co which has just in the past six months taken on a fairly substantial Optus contract. I'm in the 4th & last wave of recruits from the past two months and the outsourcing co is now talking about moving about 1300 employees (~200 are on Optus contract) from South Melbourne to be nearer its 500 or so in the CBD (old SECV). Optus itself probably has around 50,000 sqm in central Melbourne spread across three sites (Collins St, Flinders St & Albert Road) and a site in Preston which no doubt will also be a contender for amalgamation (and I'd hazard a guess and say that that is exactly what we've been hearing whispers of down here). Just hope they do something in Docklands like NAB.

[JayT]

Originally Posted by Grollo

well "office park capital of Australia". Nearly every city in America has massive office parks, which is part of the reason why so many downtowns in The USA have so many parking lots and ours don't.

Silicon Valley has more office space in office parks than than the total amount of office space in the Sydney CBD!!!

Office park capital of Australia should be Gold Coast. They just keep building office buildings in the suburb - they are everywhere. They are no higher than 6 stories max for most of them though - what a waste!!!

jt

Optus dumps North Sydney’s ‘best’ for North Ryde
In one of the major leasing transactions in Australia for 2004, Optus has dumped its North Sydney headquarters to move to a new $350 million office complex in North Ryde.

Optus has a lease running on 36,000 sqm at Mirvac’s 101 Miller Street, North Sydney, but has chosen not to resign and head to Stockland’s owned and managed CentreCourt Estate in Macquarie Park, North Ryde.

The deal is a major coup for Stockland over arch-rival Mirvac.

Stockland recently received planning approval to commence the $350 million development of the office park site into six low-rise buildings with retail facilities, a child care centre, gymnasium, food court and parking for 2,100 cars.

Stockland managing director Matthew Quinn said the development of CentreCourt Estate will be the largest single tenant campus-style workplace in Australia designed to meet the needs of Optus.

“The development will have a 4.5 star SEDA rating, demonstrating Stockland’s commitment to sustainable building practices,” Quinn said.

Stockland will consider launching an unlisted fund for a share of the ownership of the new Optus headquarters. This follows the success of Stockland Direct Office Trust No.1, which recently closed oversubscribed.

Optus will relocate 6,500 employees to the new 84,000 sqm campus-style workplace on completion in July 2007.

Mirvac Group today confirmed that Optus will be vacating 101 Miller Street North Sydney, when its lease expires on October 31, 2007.

Mirvac confirmed that Optus will continue to pay $485 net per sqm for the remainder of its lease, which covers approximately 36,000 square metres.
Ironically, the Mirvac lease ends in October 2007 just in time for the opening of its new home in North Ryde.

Mirvac is somewhat philosophical in losing such a major tenant as Optus.

Mirvac managing director Robert Hamilton said the decision by Optus would allow Mirvac its preferred option of reweighting the building’s tenancy profile.

“It is without question the best building in North Sydney and to have a single tenant is not our long term preference as it limits rental growth,” Hamilton said.

“Market research from several commentators suggests that there will be a significant increase in demand for office space in Sydney leading up to 2007, and we are confident that there will be strong interest from potential tenants.”

Mirvac plans to upgrade certain areas of the building following Optus completing its make good requirements.

The Stockland deal was confirmed following the completion of the assessment and approval process by the Department of Infrastructure, Planning and Natural Resources and the conclusion of vacant possession negotiations for existing tenants.

Quinn said Stockland had entered into a fixed time and fixed term arrangement with Baulderstone Hornibrook to undertake the construction works.

Optus’ new home was designed by architects Rice Daubney.

According to DIPNR, the Macquarie Park Corridor currently employs over 29,000 people, and this number is growing by 800 jobs each year.

Quinn said construction work due to commence at the site in the first quarter of 2005 will bring a further 1,600 jobs to the North Ryde area over the next three years.

Stockland is one of the largest owners of commercial property in North Ryde along with fellow national development group Australand.

[rondeez]

Originally Posted by finn

Woolworths is currently building their new HQ at Norwest Business Park in the Hills District...that is about 92,000 sqm, or so I've heard! Most of their head office stuff is in the CBD at the moment, plus other admin spread throughout the metro, all being consolidated in the one location.

Yes it is MAMMOTH. It is 5mins from where i live in Castle Hill. Was driving past it with my Girlfriend and she was all "WOW WHAT IS THAT. THAT IS HUUUUGE?" ... for a second there i thought she was talking about something else HA HA HA

Ive been meaning to take photos of all the new office buildings being built at the Norwest Business Park.

woolworths are also building @ perth international airport... but thank fuck its only a distribution centre yack @ office parks... does north ryde had a city grid layout or just low rise with big carparks and the odd stingy lunch bar?

[rondeez]

Norwest Business Park has a beautiful setting.





The newer buildings being built are of even better standard. Ill try to find more/take more pics later.

http://www.norwestbusinesspark.com.au

[MILIUX]

Originally Posted by perthwa

woolworths are also building @ perth international airport... but thank fuck its only a distribution centre yack @ office parks... does north ryde had a city grid layout or just low rise with big carparks and the odd stingy lunch bar?

It is pretty much well layered. Like someone said earlier, it is Oz's version of Silicon Valley. Home to more TNC's than the CBD.