- Project expected to cost $1.4 billion
- Completion to be in early 2026
- Funding to come through debt facilities and may include third party capital
Part of the redevelopment close to Sydney’s Central Station has progressed, today Dexus (ASX: DXS) announced it entered into binding terms which provide a framework to fund, develop and invest in Atlassian’s new headquarters in Sydney.
Located adjacent to the Central Place Sydney development, and within the State Government-led Tech Central precinct, Dexus expects the project will be approved by the end of this year. and for construction to reach completion in early 2026.
The property will be located at 8-10 Lee Street, Sydney, and include a 40 storey office tower. The development will include retail amenities and a new YHA accommodation space at the base.
Designed by New York-based SHoP Architects in partnership with BVN in Australia, the offices will be a ‘hybrid timber tower’ split into four-storey sections called ‘habitats’.
Darren Steinberg, Dexus CEO said: “The Atlassian tower is a great example of the future of workplace and is aligned with our purpose of creating spaces where people thrive.”
Dexus will be the development manager and take responsibility for delivering the project, funding 100% of the project during construction. Dexus will retain a long-term equity interest in the asset with Atlassian; Atlassian will take a 15-year lease on the property.
The project is expected to cost some $1.4 billion, Dexus said it will fund the costs through debt facilities and may also look to introduce third party capital into the project prior to completion.
Ross Du Vernet, Dexus Chief Investment Officer said: “This acquisition increases the size of our city shaping development pipeline and provides us with appealing risk adjusted returns.”
