- Dexus (DXS) stated today that it has signed into binding arrangements to fund, build, and invest in Atlassian’s new Sydney headquarters
- DXS will function as development manager and accept responsibility for the project’s delivery and finance 100 per cent of the project expenditures
- The project is projected to cost $1.4 billion in total and will be funded through existing debt facilities and potential third-party capital
- In FY22, Dexus’ adjusted funds from operations and dividend per security will be unaffected by the development project
- Shares in Dexus are down 0.78 per cent, trading at $10.16 at 11:31 am AEST
Dexus (DXS) has entered into binding terms which provide a framework to fund, develop, and invest in Atlassian’s new headquarters in Sydney.
DXS will function as development manager and accept responsibility for the project’s delivery, finance 100 per cent of the project expenditures throughout construction, and retain a long-term ownership stake in the asset with Atlassian as part of the agreement.
It is projected to cost $1.4 billion in total, with Dexus to fund the development through debt facilities, and it is possible that third-party money will be brought into the project before it is completed.
The deal is contingent on a number of prerequisites, including planning and other government permissions, which are scheduled to be met by December 2021, with construction beginning in early 2022 and ending in early 2026.
Dexus CEO Darren Steinberg said the tower is a great example of the future of the workplace.
“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 precinct,” he said.
The property measures 3487 square metres and is located at 8-10 Lee Street in Sydney, located adjacent to the Central Place Sydney development, and within the State Government-led Tech Central precinct.
A sustainable 40-level office tower with retail amenities and new YHA housing space at its base, as well as a new public realm around Central Station, will make up the 75,088-square-metre building.
Atlassian will sign a 15-year lease for the space, which will serve as the company’s headquarters.
The building is aiming for NABERS Energy and Green Star design ratings of six stars.
Designed by New York-based SHoP Architects in collaboration with Australian company BVN, the structure is centred on occupant wellness and consists of a hybrid timber tower with four-story sections dubbed “habitats” and naturally ventilated spaces throughout.
Dexus chief investment officer Ross Du Vernet said the acquisition will increase the size of its development pipeline and provide Dexus with appealing risk adjusted terms.
“The exciting sustainability outcomes and initiatives championed at this development are consistent with our ambitions and will enable us to leverage this innovation across our broader platform,” he said.
In FY22, Dexus’ adjusted funds from operations and dividend per security will be unaffected by the development project.
Shares in Dexus are down 0.78 per cent, trading at $10.16 at 11:31 am AEST.