Dexus one step closer to developing Atlassian Sydney HQ

Dexus one step closer to developing Atlassian Sydney HQ

Developer Dexus (ASX: DXS) expects to own 60-65 per cent of the world's tallest hybrid timber tower that will house Atlassian's (NASDAQ: TEAM) Sydney headquarters upon completion, with the remainder to be held by the tech giant that is known for its Jira tracking software and its prolific investor founders. 

Dexus revealed today it had exchanged binding transaction documents with Atlassian to fund, develop and invest in the 40-storey office building on 8-10 Lee Street, which would include naturally ventilated areas akin to an outdoor garden on each floor with an exterior of glass and steel.

Located next to the Central Place Sydney development and within the NSW-led Tech Central precinct, the $1.4 billion project would revitalise the existing YHA site into the lower levels of the building and include retail space and a new public realm around Central Station.

In July Dexus noted expectations that planning and government approvals would be signed off by December 2021 with construction to commence in early 2022. Forecasts for the first sod have now been pushed back to after mid-2022 subject to a set of conditions precedent prior to financial close, but this hasn't changed the indicative timeline for completion which remains set for 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," says Dexus chief investment officer Ross Du Vernet.

"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."

SHoP architects of New York envisage the tower will be an icon and anchor of Sydney's developing technology district.
SHoP architects of New York envisage the tower will be an icon and anchor of Sydney's developing technology district.

 

When the development was announced in June 2021, Atlassian co-founder and co-CEO Scott Farquhar said if you want to work in tech, "this is the place you will want to be".

"Technology can turbo-charge Australia's recovery. That's why we're building this precinct. We want to create jobs, ideas and innovation," Farquhar said at the time.

The building was designed by the same New York-based architects that designed Uber's headquarters - SHoP - with Australian practice BVN as the design team.

"It's an amazing design. We've searched the world to find the best architects and engineers to put it together," Farquhar said last year.

"The space that we are building will be highly sustainable and highly flexible. it will be purpose-built for the future of work, for tomorrow's world, not today's."

The two parties have worked with third party stakeholders to facilitate the development, including the NSW Government on the Project Development Agreement.

Dexus may also look to introduce third party capital into the project prior to completion.

The novel use of mass timber in combination with open garden spaces allow for a diminished ecological footprint, with the project's façade reportedly set to reduce carbon emissions by 50 per cent over 10 years, according to the project's architects.
The novel use of mass timber in combination with open garden spaces allow for a diminished ecological footprint, with the project's façade reportedly set to reduce carbon emissions by 50 per cent over 10 years, according to the project's architects.
On a site spanning 3,487sqm, the Atlassian HQ is expected to have 75,000sqm of gross floor area (GFA) with the tech company agreeing to a 15-year lease.
On a site spanning 3,487sqm, the Atlassian HQ is expected to have 75,000sqm of gross floor area (GFA) with the tech company agreeing to a 15-year lease.

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Looking for a credit or charge card that’s built for your business? Try American Express
Partner Content
A good credit card should work for you, not against you, and let you and your business ...
American Express
Advertisement

Related Stories

Dexus takes the reins on Atlassian hybrid timber tower

Dexus takes the reins on Atlassian hybrid timber tower

Real estate group Dexus (ASX: DXS) has invested in tech unicorn A...

Atlassian Sydney HQ will be world's tallest hybrid timber tower

Atlassian Sydney HQ will be world's tallest hybrid timber tower

Software giant Atlassian aims to "turbo-charge" Austral...

Dexus secures $2.1 billion redevelopment of Brisbane's Eagle Street pier

Dexus secures $2.1 billion redevelopment of Brisbane's Eagle Street pier

Two sparkly new office towers, a variety of restaurants and shops, ...

Dexus profit soars despite lagging return to the office

Dexus profit soars despite lagging return to the office

Australian property investor Dexus (ASX: DXS) has seen its profits ...