Property Development

Australian Federal Police commits to 30-year lease at Charter Hall’s Wesley Place in Melbourne

Australian Federal Police commits to 30-year lease at Charter Hall’s Wesley Place in Melbourne
Written by The ReReport
As seen in the Source link, written by on 2019-10-29 06:53:57

Charter Hall has secured Australian Federal Police as sole occupier to 140 Lonsdale Street, a 20-storey, 22,750 square metre office due for completion in 2022.

Charter Hall Group has scored another coup at its $1.3 billion Wesley Place office development in the Melbourne CBD – securing Australian Federal Police to all of an unbuilt 20-storey building.

AFP has signed for an initial 30 year term, with multiple options, for the 22,750 square metre complex to be known as 140 Lonsdale Street (artist’s impression, top).

Charter Hall said it has been working with the tenant for
some time to design the “highest quality fit-for-purpose” headquarters.

The office will replace a multi-level car park – and be
mostly exposed to Little Lonsdale Street.

Lendlease is expected to complete it by late 2022.

Charter Hall estimates it will then have an end value of
about $300 million.

The AFP has been based for years at 383 La Trobe Street – a seven level, 10,200 sqm office (pictured, below) which we reported last year sold to Mirvac for $122 million.

Mirvac immediately announced its intention to replace
that building with an A-grade, 40,000 sqm commercial complex.

It was this year speculated the AFP might relocate
elsewhere in the city’s west end, possibly committing to space near Spencer
Street, and an office Cbus Property is developing for Victoria Police, opposite
the Melbourne Remand Centre.

However, Charter Hall managing director and group chief executive officer, David Harrison said, his firm’s commitment to work with government customers, lured the AFP east.

The outgoing AFP office at 383 La Trobe Street is set to be replaced with something four times bigger after selling to Mirvac for $122 million last year.

“We have worked closely with the AFP to design a bespoke
property solution that will enable and support the AFP’s important work around
national security, counter terrorism and continuing to make Australia a safer
place,” Mr Harrison said.

Charter Hall’s regional development director, Simon Stockfeld, described receiving Parliamentary approval for the AFP’s lease at 140 Lonsdale Street as “an important milestone”.

“We have worked collaboratively with the AFP to design
its new purpose-built MSO, and we are looking forward to delivering one of the most
advanced buildings in Melbourne that will integrate seamlessly into the wider Wesley
Place precinct”.

Wesley Place is replacing land owned by the Uniting Church of Victoria, acquired in 2016 by Charter Hall via a 125-year lease.

Upon completion it will include three offices including 130 Lonsdale Street where last December we reported another federal government organisation, the newly formed Australian Financial Complaints Authority, committed to 7600 sqm across four levels for an initial 12 year term.

In July, Australian Super committed to 16,200 sqm within
the same building, which will also be occupied by Vanguard and the Uniting

Artist’s impression of the office under construction at 130 Lonsdale Street. Charter Hall rented all 60,000 sqm out by July this year – 10 months prior to its completion.

With the Australian Super lease, the 35-level, 60,000 sqm A-grade building (artist’s impression, right) was fully occupied, 10 months prior to practical completion.

Wesley Place will contain a total of 110,000 sqm of commercial space within two new skyscrapers (130 and 140 Lonsdale Street).

An existing office on the 1.1 hectare parcel making way
for Wesley Place, 150 Lonsdale Street, will undergo a major refurbishment as
part of the redevelopment.

Colliers International’s Edward Knowles
and Tony
, with JLL’s Stuart
and James
, are the project’s
leasing agents

Charter Hall and the federal government are forming a
stronger relationship

Charter Hall is landlord to
several federal government agencies.

Last November, we reported it acquired two industrial properties leased to the AFP, and occupied by Australian Border Force, for $118.5 million.

A month earlier, we
Charter Hall paid a private investor $55 million for the
Villawood, Sydney, commercial complex tenanted to the National Archives of

In 2017, the fund manager’s Direct
PFA Fund paid
$58.6 million for a Forrest, Canberra
, office predominantly leased to the
Department of Foreign Affairs and Trade.

Charter Hall also actively
pursues investments tenanted to state government arms, two of its funds recently
picking up a Brisbane bus depot
for $102.5 million.

It also works with occupies in
the community field – last
month announcing plans
to develop a $350 million Innovation Quarter with
Western Sydney University.

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