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Real estate group Dexus (ASX: DXS) has invested in tech unicorn Atlassian's (NASDAQ: TEAM) new headquarters in Sydney, currently set to become the world's largest hybrid timber tower upon completion in 2026.
Dexus will fund 100 per cent of the project, oversee development, and will retain a long-term equity interest in the asset.
Total project costs are expected to hit $1.4 billion - a bill that will be footed through debt facilities, according to Dexus, although the developer may also "look to introduce third-party capital into the project prior to completion".
Dexus CEO Darren Steinberg says the Atlassian project is "aligned with our purpose of creating spaces where people thrive".
"We look forward to welcoming Atlassian as a new customer and co-owner onto our platform and building out our developments within the Tech Central project," he says.
Dexus chief investment officer Ross Du Vernet adds the acquisition provides the company with "appealing risk-adjusted returns".
Plans for the Atlassian headquarters were first unveiled in June 2021, with the unique build slated to draw 50 per cent less energy compared to a conventional skyscraper. The team of architects behind the innovative design, New York-based SHoP, also worked on Uber's San Francisco headquarters.
The Dexus deal remains subject to planning and other government approvals, which are expected to be signed off on by December 2021. Construction, in turn, is expected to commence in early 2022.
The final site, spanning 3,487 square metres, sits within the NSW government-led Tech Central precinct, which State Premier Gladys Berejiklian has previously flagged as Australia's answer to Silicon Valley.
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