John Fairfax Holding has put its Spencer Street Headquarters in Melbourne for sale and at the same time will move its Sydney operations to Mirvac’s One Darling Island in Pyrmont.
Fairfax’s chairman Ron Walker said One Darling Island is a new high-tech building for the new diversified Fairfax of the 21st century.
Fairfax has signed a 20 year lease at One Darling Island, a new 22,000 sqm A-grade commercial office building which comprises ground floor office and retail and five upper levels of office.
Fairfax has resided at Darling Park for 11 years and the move will affect up to 2000 employees.
The Sydney relocation will be completed by the middle of next year. Fairfax Digital which includes the business of Domain.com.au and DomainCommercial.com.au – a news partner of Australian Property Journal, will move into One Darling Island from its Wharf 7 Pyrmont offices this December.
Fairfax’s chief executive David Kirk said the group is evolving significantly from a publishing company to a dynamic, integrated media business.
Kirk said the current premises at Darling Park have some years left on the lease and Fairfax is currently in discussion with potential tenants.
“It is difficult at this time to accurately quantify the one-off costs associated with the move to Pyrmont. The company expects these costs will be significantly offset by proceeds from the sale of the Spencer Street site,” he added.
Meanwhile in Melbourne, Kirk said the group is assessing alternative premises for The Age and its operations.
“We will apply the same principles to decisions on our headquarters in Melbourne,” he added.
Earlier in this year, Australian Property Journal learnt that Fairfax was on the move in Melbourne.
Property sources told Australian Property Journal that Fairfax was on the market for a 15,000 sqm office to house its operations and The Age.
Property sources believe the new Fairfax and The Age headquarters will be a new $70 million building located at Melbourne’s Docklands.
For Mirvac, the Fairfax deal was just one of the group’s leasing coup. In addition to One Darling Island, Mirvac have secured a 10 year lease with the Commonwealth of Australia, Department of Veteran Affairs at Lovett Tower, 13 Keltie Street, Woden, Australian Capital Territory.
Lease terms for 50% of the 20,000 sqm property DVA currently occupies, were renewed in July 2006. The balance of the space will be leased by DVA in April 2007 with a rent of $310 per sqm per annum gross.
By Nelson Yap
