AMP Capital has today announced that the Australian Tax Office (ATO) has signed an agreement for lease (AFL) for just over 13,000 square metres across nine floors over a 10-year term at the landmark office building 255 George Street, Sydney.
This lease, which commences no later than 1 December 2022, takes 255 George Street, owned by investors in the AMP Capital Wholesale Office Fund (AWOF) to over 99 per cent leased.
AMP Capital Global Head of Real Estate Kylie O’Connor said: “We are delighted to welcome the Australian Tax Office to 255 George Street and to have delivered close to full occupancy to AWOF investors ahead of schedule.”
“In the current environment, this lease demonstrates that quality, well-located offices that cater for a shift in tenant demand to buildings that provide greater amenities, the latest health and wellbeing features and high sustainability credentials, will benefit from ongoing strong demand.”
Also contributing to the building’s almost fully-leased status, are new leases signed by AXA Investment Managers and People + Culture Strategies which follow the Bank of Queensland Group (BOQ) lease signed in March this year for nearly 5,800 square metres over a 10-year term with signage rights.
255 George Street is undergoing an almost $70 million refurbishment including an architecturally designed lobby with a selection of work zones available to support flexibility as well as a concierge, new end-of-trip facilities and wellness studio. The central plant upgrades are close to completion, with lobby works due to complete in late Q2 2022.
“The integration of collaborative spaces and a greater emphasis on amenities that promote employee health & wellbeing including social distancing is expected to lead to a reversal of the densification trend in offices and an increase in demand for office floor space like 255 George St,” Ms O’Connor said.
“The recent leases signed for 255 George St are another indication of the overstated impact of work from home flexibility on high quality office spaces. Based on previous market cycles, Sydney and Melbourne CBDs recorded an average increase in occupied space of 5.6% and 5.5% respectively over the two years following a major downturn. We are expecting the office to bounce back strongly post this latest lockdown,” concluded Ms O’Connor.
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About AMP Capital Real Estate
AMP Capital is one of the largest direct real estate fund managers in the Asia-Pacific1 with more than $23 billion2 in assets under management on behalf of institutional and retail investors across the globe. We are also one of the most experienced, with our heritage in real estate investment, management and development spanning over 60 years and many investment cycles, starting with Australia's first skyscraper which opened in 1962. AMP Capital's extensive global network and integrated management model allows its multidisciplinary team of real estate professionals to realise true value for clients through the investment management, property management and development of a portfolio of some of the most iconic shopping centres, office buildings and industrial estates across Australia and New Zealand. AMP Capital Real Estate has recently been recognised as a leader in sustainability with a number of our real estate funds being awarded five-star ratings with global ESG benchmark for Real Assets – GRESB, which places them in the top 20% of funds globally.
1 Source: ANREV/INREV/NCREIF Fund Manager Survey 2021
2 As at 30 June 2021. This includes AMP Capital’s 24.9 per cent share of PCCP’s NAV, equivalent to A$1.8b
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