Heart of Sydney's financial district starts to beat again

11 Jun


ING Office and Mirvac plan a $60million redevelopment of 20 Bond Street

Latest construction pictures from Space 1 Bligh.

Heart of Sydney’s financial district starts to beat again
CAROLYN CUMMINS COMMERCIAL PROPERTY EDITOR June 10, 2010 SMH
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Meet the new bourse … ING Office and Mirvac plan a $60million redevelopment of 20 Bond Street, with five-star green credentials.

THE former heart of the Sydney financial world, 20 Bond Street, is to undergo a $60 million facelift in the hope of enticing new tenants.

What was once the home of the Sydney Stock Exchange trading floor, in the basement from 10 to 20 Bond Street, then the headquarters of Macquarie Bank, has been empty for some time as the joint owners, ING Office and Mirvac, resolved numerous issues.

But as the leasing market appears to have stabilised and ownership is clear, redevelopment is in store for 35,000 square metres of premium office space on 31 levels. There has been what is termed ”soft marketing” of the space, with rents said to be $500 to $800 a square metre.

Tino Tanfara, the chief executive of ING Office, said there had been good initial inquiries. When completed, the offices will have five-star green ratings and there will be a trigeneration plant for onsite heating, cooling and power generation.

The stockbroker Credit Suisse has decided to renew its lease in the Dexus-owned Gateway at Circular Quay. There was market talk it was looking to move closer to the core of the central business district, into Bond Street.

Another touted tenant was JP Morgan, but it has now signed as the anchor for the proposed Westfield skyscraper at 85 Castlereagh Street, the final building its the $1.2 billion redevelopment of Pitt Street Mall and Castlereagh Street.

Leasing agents say that demand for office space is showing slow improvement. The white-collar market, the main tenant of any city, is holding up.

Some leasing deals are on hold as overseas parent companies are directing Australian operations not to make any expansion plans until the global economy improves.

Sydney’s CBD vacancy level is tipped to remain at about 7 per cent as there is limited supply on the horizon. Among new projects are the Dexus/CBus tower at 1 Bligh Street being built by Grocon with Clayton Utz as the anchor tenant. Grocon/GPT is also building at 163 Castlereagh Street, formerly owned by John Boyd, with the ANZ Bank as the anchor – there will be a new banking chamber on the Pitt Street entrance.

Source- http://www.smh.com.au/business/property/heart-of-sydneys-financial-district-starts-to-beat-again-20100609-xwx5.html

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