Property Development

Charter Hall Secures AFP for 30-Year Lease at $1.3bn Wesley Place

Australia’s most expensive home revealed: One Sydney Harbour penthouse sells for over $140m
Written by The ReReport
As seen in the Source link, written by theurbandeveloper.com on 2019-10-28 15:53:15

 

Charter Hall has nabbed the Australian Federal Police to fill its entire 20-storey 140 Lonsdale Street office tower on an initial 30-year lease term.

More than 560 AFP workers will relocate from 383 La Trobe Street as the $300 million 140 Lonsdale Street reaches completion in late 2022.

The AFP Melbourne office will lease 22,750sq m of dedicated tenancy space along with 135 car parking spaces as part of the 30-year lease, which includes two additional five-year options.

The AFP Melbourne state office received parliamentary approval for $98.43 million of upgrades to the building and $63.43 million in landlord incentives as part of its agreement for lease with Charter Hall.

The AFP will join tenants AustralianSuper, Cbus and the Uniting Church in Charter Hall’s $1.3 billion Wesley Place precinct. The 110,000sq m Wesley Place—the largest office precinct in Melbourne’s CBD—is now almost fully-leased.

Melbourne CBD office vacancy remains the tightest in the country, with a 3.7 per cent vacancy rate and prime grade vacancy rates tightening to 2.1 per cent—the lowest level since 2008 according to JLL’s third quarter office market report.

By financial year 2022, as Charter Hall’s 140 Lonsdale tower reaches completion, stock will have increased 9.3 per cent—nearly double the rate of Sydney’s CBD.

Related: Developer ‘Accelerates’ CBD Towers to Meet 2022 Demand