ASX-listed Dexus will fund the development of software giant Atlassian’s proposed new headquarters in Sydney’s CBD in exchange for a 60-65% stake in the property, with project costs expected to total about $1.4 billion.
The project will comprise a market-leading sustainable 40-level office tower, retail amenities and new YHA accommodation space with 75,000 sqm of gross floor area.
The 3,487 sqm site at 8-10 Lee Street is located adjacent to the Central Place Sydney development and within the State Government-led Tech Central precinct.
The deal, which was first announced last year, will see Atlassian retain an estimated 35-40% interest in the asset and occupy the office accommodation under a 15-year lease.
Dexus said it may also look to introduce third-party capital into the project prior to completion.
Construction is expected to start later this year and reach completion in 2026.
“This unique project will catalyse Sydney’s innovation and technology precinct, Tech Central and set a new global benchmark in sustainability and smart workplace that challenges the status quo,” Dexus Chief Investment Officer Ross Du Vernet said.
“It has been a productive partnership over the past eight months in which we have worked with Atlassian to make their bold vision a reality, and we are looking forward to the long-term relationship.”
The building will target 6-star NABERS Energy and 6-star Green Star design ratings.
Designed by New York-based SHoP Architects in partnership with Australian firm BVN, the building will focus on wellbeing and comprise a hybrid timber tower, with each four-storey section to be known as ‘habitats’ that will have naturally ventilated areas throughout.