General Property Trust will develop a $100 million building at 818 Bourke Street, adjacent to the National@Docklands complex, for Ericsson’s new corporate headquarters in Melbourne.
GPT expects to achieve a yield of 7.5%.
The building, is expected to be completed in early 2008, will consist of approximately 21,700 sqm of office space over 6 levels, parking for 175 cars and 165 bicycles and approximately 1400 sqm of retail space. The building will represent A-grade office space with expansive 3500 sqm floors, an energy efficient design and northerly water views from each floor.
Ericsson Australia has leased 10,650 sqm, consisting of the top three floors of the building for a period of 10 years from completion, providing GPT with a significant pre-commitment over more than half of the office space.
The project is being built at Lend Lease’s Victoria Harbour site.
Lend Lease will provide design, development management and construction management services to GPT.
Office Portfolio Manager for GPT, Tony Cope said GPT’s close relationship with Ericsson at the group’s Melbourne Central gave the Group the opportunity to work with Ericsson to provide a solution to their desire to consolidate their premises in a contemporary campus-style building.
“This is a great project for GPT which builds on our success with the National@Docklands. In addition to adding a quality building to the Portfolio, we have already secured a long term lease for over half the building. Given the attractiveness of the Victoria Harbour precinct to tenants and the high standard of services being delivered we are confident that the remaining space will attract strong interest,” Cope said.
Director of People and Organisation for Ericsson Australia, Judy Edsall said bringing all Melbourne based employees together at such a new and dynamic precinct is a great opportunity for Ericsson.
“On waterfront and in close proximity to parks, gardens and public transport, it will be a fantastic environment for all employees and a great place for customers to visit,” Edsall added.
Lend Lease Development Director of Docklands Maurice Cococcia said Ericsson’s decision to relocate indicates the momentum gathering at Victoria Harbour and adds impetus to our vision for Victoria Harbour as a major commercial and retail location in Melbourne.
By Ted McDonnell
