ANZ to spend $60m on new HQ

ANZ Bank has earmarked up to $60 million for its new headquarters in the 161 Castlereagh Street skyscraper, which is being built by developer Grocon.

By InvestSMART · 2 Nov 2011

By InvestSMART ·
2 Nov 2011

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ANZ Bank has earmarked up to $60 million for its new headquarters in the 161 Castlereagh Street skyscraper, which is being built by developer Grocon.

Expressions of interest will cover the fit-out for the 28,500 square metres of premium space, which is also the new headquarters of law firm Freehills at the Pitt Street entrance of the block.

Despite Grocon having sold its 25 per cent stake in the project last week to the Industry Superannuation Property Trust for $200 million, it will remain the developer.

It has been suggested that Grocon could use the cash to buy Thakral House - atop Wynyard Station on George Street - which is being sold by Thakral Holdings and is also earmarked for redevelopment.

The other owners of the Castlereagh Street tower include GPT's Wholesale Office Fund with 50 per cent and LaSalle Investment Management with the remaining 25 per cent.

The original owner of the site, property developer John Boyd, has retained a penthouse that will be accessed separately from the office tower entrances.

The Grocon project's general manager, Stephen Nicol, said yesterday construction of the $800 million building was on schedule and expected to be completed in early 2013, with 84 per cent of the office space leased to ANZ and Freehills.

A leasing program by agents CBRE and Cook Wish Ellison has been launched to lease the five floors covering more than 8000 square metres at the top of the tower

James Patterson of CBRE said the 161 Castlereagh Street site was the largest commercial office building project under way in the Sydney CBD.

The leasing rates for the building are expected to start from $1100 per square metre and spaces are available from 215 square metres to entire floors of 1625 square metres.

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Frequently Asked Questions about this Article…

How much is ANZ spending on the fit-out of its new headquarters at 161 Castlereagh Street?

ANZ has earmarked up to $60 million for the fit-out of its new headquarters in the 161 Castlereagh Street skyscraper, covering premium office space within the 28,500 square metres of fitted area.

Who is developing 161 Castlereagh Street and what recent ownership change occurred?

Grocon is the developer of the 161 Castlereagh Street project and will remain the developer even after selling a 25% stake in the tower last week to the Industry Superannuation Property Trust for $200 million.

What is the total cost and expected completion date for the 161 Castlereagh Street building?

The Grocon project is an $800 million building that, according to the project's general manager Stephen Nicol, is on schedule and expected to be completed in early 2013.

How much of the office space at 161 Castlereagh Street is already leased and who are the major tenants?

About 84% of the office space in the tower has been leased, with major tenants including ANZ and the law firm Freehills (whose entrance is at the Pitt Street side of the block).

What leasing options and rental rates are being advertised for office space at 161 Castlereagh Street?

Leasing rates for the building are expected to start from $1,100 per square metre. Spaces on offer range from 215 square metres up to entire floors of 1,625 square metres, and a leasing program has been launched for five top floors covering more than 8,000 square metres.

Who are the owners of the Castlereagh Street tower besides Grocon and what are their stakes?

The other owners of the Castlereagh Street tower are GPT's Wholesale Office Fund, which holds a 50% stake, and LaSalle Investment Management, which holds the remaining 25%.

What has been suggested about how Grocon might use the $200 million from the stake sale?

It has been suggested that Grocon could use the $200 million from selling its 25% stake to buy Thakral House (the building atop Wynyard Station on George Street) from Thakral Holdings, with that site also earmarked for redevelopment.

Which agents are handling leasing for the project and how significant is the site in the Sydney CBD market?

Agents CBRE and Cook Wish Ellison have launched the leasing program for the tower. James Patterson of CBRE described the 161 Castlereagh Street site as the largest commercial office building project under way in the Sydney CBD.