CORRS Chambers Westgarth is advising Australand Property Group on the commercial leasing of Australand’s office building at 357 Collins Street in Melbourne’s CBD.
Commonwealth Bank has been secured as the tenant of approximately one third of the total office area of the building, about 8,500 square metres.
The lease, which will commence October 2012, Commonwealth Bank is the first to commit to 357 Collins Street. It will occupy about one third of the office area over floors six to 10 for an initial term of 10 years, at an average net rental of $385 per square metre.
The office building, with an estimated value of $180 million, will comprise approximately 30,000 square metres of A-grade office accommodation upon completion. It adds to Australand’s already impressive investment portfolio.
The Corrs team was led by partner Nathaniel Popelianski and supported by senior associate Beth Crilly.
Nathaniel Popelianski said: “In order to assist Australand with finalising its agreement with Commonwealth Bank, the Corrs team were required to work within tight timeframes. The negotiations were complex and required a large amount of technical drafting.”
Bradley Price, Australand’s national general manager legal said: “We feel very comfortable knowing that the Corrs team is at our side to assist us with the leasing and development of 357 Collins Street. In our recent tenancy deal with Commonwealth Bank, the Corrs property team exceeded our high expectations.”
Located within the centre of Melbourne’s CBD, 357 Collins Street was acquired by Australand in March 2010 and is currently undergoing a significant redevelopment.
On completion, the building will comprise approximately 30,000 square metres of A-grade office accommodation and 1,800 square metres of retail space. It will be retained within Australand’s investment property portfolio, with the estimated value upon completion expected to be approximately $180 million.
Sean McMahon, Australand’s executive general manager of the commercial and industrial division, said the space is expected to deliver a yield on cost of approximately 9 per cent and targets a 5 star NABERS Energy rating on completion.