Charter Hall has nabbed Australia’s largest super fund at its $1.2 billion Wesley Place precinct, finalising its leases at the 130 Lonsdale Street tower 10 months ahead of completion.
AustralianSuper has struck a 12-year lease for 16,200sq m across the upper levels of the building, joining fellow super funds Telstra Super and Cbus in the 35-storey tower.
AustralianSuper, which is currently based nearby at ISPT’s 50 Lonsdale Street, will shift to the Wesley Place precinct in the second half of 2020.
Charter Hall’s $5.6 billion prime office fund now has more than 50,000sq m across its total office space occupied by Australian superannuation funds. The fund manager secured a sought after 17,200sq m, 15-year lease from QSuper at its Brisbane Square Tower last year.
Charter Hall has been an active player in Melbourne’s CBD office market, paying $830 million for Telstra’s headquarters this month after bidding on the $1.3 billion 80 Collins Street precinct earlier in the year.
More than half of Charter Hall’s commercial pipeline is now in Melbourne’s strong performing CBD.
Charter Hall chief executive David Harrison said the group was attracted to Melbourne’s CBD by strong tenant demand and a sub-4 per cent vacancy rate.
“The Melbourne CBD recorded 153,650sq m of net demand in the year to 31 March 2019 – double that of Sydney CBD (71,800sq m) — and was the strongest of any Australian CBD office market,” Harrison said.
The Charter Hall prime office fund has also “accelerated” plans for the construction of its $1.5 billion twin-tower office project at 555 Collins Street to meet a key spike in the expiry of commercial leases in 2022.
The fund manager commenced demolition on the 80,000sq m office towers in May after lodging a development application in April.
Construction of the 60,000sq m 130 Lonsdale Street skyscraper is slated for completion in April 2020. The Cox Architecture-designed skyscraper is targeting platinum WELL certification, 6 Star Green Star and 5 Star Nabers ratings.
JLL’s Stuart Colquhoun and Corporate Real Estate Advisory’s Peter Birrell brokered the deal.
The Wesley Place precinct commenced construction in October 2017 and will bring to market 110,500sq m of office space and 3,500sq m of retail when complete.