The ANZ world headquarters move has been on, off and now its on again – but unfortunately for most of the contenders they have merely made up the numbers, because ANZ’s $350 million development is headed to Lend Lease’s Victoria Harbour.
Yesterday, the official word from ANZ was that at this stage the Bank is still reviewing its options.
“The process will likely be finalised later this year,” ANZ told Australian Property Journal yesterday.
The further delay is giving the market more mixed signals. Yesterday, insiders close to the bid told Australian Property Journal the contenders who were invited to tender for the job are beginning to believe that the job will not happen.
“Put it this way, they are not exactly hanging on the edge of their seats anymore,” the source said.
Meanwhile, another market source said Lend Lease has already secured the job to be built at the $1.8 billion Victoria Harbour precinct in Melbourne’s Docklands. The ANZ HQ will likely be located nearby the 56,000 sqm National Australia Bank HQ.
“Lend Lease was the favourite from the very beginning,” the source said.
Whilst ANZ was unable to comment whether the field of contenders has been narrowed down, sources close to the bid told Australian Property Journal joint partners MAB Corporation and Grocon and partners Lang Walker and Malaysian developer Kuok Group have not received a letter rejecting their bids.
Unlike, Becton and PDG Corporation who were notified in April this year they have been unsuccessful.
Meanwhile, it would seem the Bank is beginning to run out of time to find a new home.
ANZ has several leases located in Melbourne which are due to be renewed in 2009, including one in February 2009 for its accommodation in Richmond and another one in October 2009 at 530 Collins Street, which houses several thousand employees from Level 14 and upwards.
Market sources said if the Bank does make an announcement later this year, it will be scrambling to meet the deadline in February 2009.
“Insurance Australia Group has pre-committed to a 27,000 sqm, $220 million on the corner of Bourke and William Streets in February 2009. And construction is already underway for the 48,000 sqm building since Multiplex won the job in March this year.
“The earliest ANZ will be able to move into its new headquarters will be early 2010,” the source added.
The ANZ world headquarters is presently located within the 162-metre tall 37 storey ANZ Tower, which was completed in 1992, located at 100 Queens Streets, housing around 1000 staff. ANZ owns the building and has earmarked it for refurbishment.
The company also leases 50% of 55 Exhibition Street as well as its Card Services centre on Melbourne’s Kingsway.
ANZ also has a 50 year head lease at 55 Collins Street and there is 19-years remaining on that lease.
If built, market sources believe ANZ will pay as much as $600 per sqm for the 80,000 sqm building, including a $320 per sqm base lease; $120 million upfront fitout costs which will contribute $180 per sqm plus $100 per sqm in outgoings.
In the addition, ANZ is looking at a 15 year lease. Whereas, NAB struck a deal of $200 per sqm for a five year lease at Victoria Harbour.
By Nelson Yap
