AXIOM Properties and ISPT have signed a $14 million deal with government statistician, the Australian Bureau of Statistics, to lease the former "The Age" headquarters in Melbourne.
As previously reported by Australian Property Journal in September, the JV confirmed the ABS will lease the property from July 2010 once Fairfax’s The Age vacates and moves to Media House at Collins St in the docklands precinct.
Axiom and ISPT have agreed the terms of the surrender of the current lease with Fairfax, which will occur on January next year. This will allow for a smooth transition to the new lease with ABS, which is due to commence mid next year.
The ABS will lease the entire 14,500 sqm of space at 250 Spencer St, on a short term lease of 2.5 years until December 2013. This will allow the statistician to conduct the next census in 2011.
The ABS previously leased the former National Australia Bank office building at 271 Collins St, where it leased 19,000 sqm for two and a half years – for the 2006 census.
Axiom managing director Ben Laurance said the signing of this leasing deal follows the recent sale of the residential component of the site on Lonsdale St for $17 million last month.
“This is an excellent outcome for the partners and for our shareholders. Signing a lease agreement over the whole building in the current circumstances is testament to the quality and configuration of the current building, the location and the accessibility,” he added.
The deal was negotiated by Jones Lang LaSalle’s James Kaufman and David Bowden.
Bowden said the property comprises large open floor plates which are attractive to major occupiers.
“This is another example of the take-up of the backfill space created by the relocation of businesses into new projects in the Melbourne CBD, which will limit the increase in vacancy rates that was initially anticipated in the Melbourne market,” Bowden said.
Australian Property Journal
